Answer :
The weekly cost of capital per worker, given the marginal rate of technical substitution of 10 pieces of equipment per worker and a rental price of $50 per piece of equipment, is $500.
The weekly cost of capital per worker given the marginal rate of technical substitution (MRTS) of labor for capital. The MRTS is 10 pieces of equipment per worker, implying that one worker can be substituted for 10 pieces of equipment without affecting output. Since the weekly rental price of a piece of equipment is $50, to find the weekly cost of capital per worker, we must multiply the number of pieces of equipment by the price per piece.
Therefore, the weekly cost of capital per worker is: 10 pieces of equipment \\* $50 per piece = $500.
The cost of capital matches the weekly wage of a worker, which is also $500. This information can be utilized in decision-making processes about the firm's production methods and resource allocation to maintain efficiency.
