Following table gives production function data for product X for given range of capital and labour (here labour is 8 man hours) for long run. a) Consider the case of short run for the firm, where it is employing 2 units of capital (K). and the wage rate is Rs. 100 per man-hour. Company must hire one worker for a full day employment as per Government laws. Construct a table with following headings for the short run: TP, TRP, MP, MRP, W (wage) and suggest how many workers must the company hire. b) The company operates at 2 K and 3 L combination to produce 600 units of output. The cost of per unit of 3rd unit of K = Rs. 1000, then should the company increase L or increase K to go for next higher level of production? Justify your answer with all calculations.

 capital 0 1 2 3 4 5 6 0 0 0 0 0 0 0 0 1 0 100 200 300 400 500 600 2 0 200 400 600 800 1000 1200 3 0 300 600 900 1200 1500 1800 4 0 400 780 1200 1600 1800 2400 5 0 500 960 1500 1800 2500 3000 6 0 600 1100 1800 2400 3000 3600