1. 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.
2. 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.
3. The company operates at 2 K and 3 L combination to produce 600 units of output. The cost of per unit of 3^rdunit 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.

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 [3+2=5] 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 3"d 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 0 0 0 100 200 300 400 500 600 NO O 200 400 600 800 1.000 1.200 Labor 300 600 900 1.200 1.500 1.800 0 400 780 1.200 1.600 1800 2.400 O 500 960 1,500 1800 2.500 3.000 0 600 1100 1.800 2.400 3.000 3.600