The Robotics Corporation produces cuddly toys using only computer-driven robots. The quantity of toys (T) produced per

Question:

The Robotics produces cuddly toys using only computer-driven robots. The quantity of toys (T) produced per year is given by T = 10√R where R is the number of robots used during each year of production.
a. If the market price of robots is $2,000, the real interest rate is 0.05, and the depreciation rate on robots is 0.10, what is the firm's implicit rental rate for robot use?
b. What is the firm's total cost function for production of T?
c. If cuddly toys sell for $60, how many will this firm choose to produce?
d. How many robots will the firm employ for the year?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...