While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. for example, wages should be $5,600 plus $1.40 per liter of gelato sold and the actual wages for june were $13,860. via gelato expected to sell 6,000 liters in june, but actually sold 6,200 liters.

Suppose the production function in an economy is y = k0.5l0.5, where k is the amount of capital and l is the amount of labor. the economy begins with 64 units of capital and 16 units of labor. use a calculator and equations in the chapter to find a numerical answer to each of the following questions. what are the wage and the rental price of capital? the wage is equal to unit(s) of output and the rental price of capital is equal to unit(s) of output.