According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to r

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According to The Wall Street Journal, Mitsubishi Motors recently
announced a major restructuring plan in an attempt to reverse
declining global sales. Suppose that as part of the restructuring
plan Mitsubishi conducts an analysis of how labor and capital are
used in its production process. Prior to restructuring Mitsubishi’s
marginal rate of technical substitution is 0.12 (in absolute
value). To hire workers, suppose that Mitsubishi must pay the
competitive hourly wage of ¥1,800. In the study of its production
process and markets where capital is procured, suppose that
Mitsubishi determines that its marginal productivity of capital is
0.8 small cars per hour at its new targeted level of output and
that capital is procured in a highly competitive market. The same
study indicates that the average selling price of Mitsubishi’s
smallest car is ¥1,200,000. Determine the rate at which Mitsubishi
can rent capital and the marginal productivity of labor at its new
targeted level of output.
Instruction: Enter your response for marginal productivity of
labor rounded to four decimal places.
Rental rate of capital: ¥
Marginal productivity of labor:
To minimize costs Mitsubishi should hire capital and labor until
the marginal rate of technical substitution reaches what
proportion?
Instruction: Enter your response rounded to four decimal
places.