Hula hoop fabricators cost 100 $ each. The Hi-Ho Hula HOOP Company (HHHHC) is trying to decide how many of these machines to buy. HHHHC expects to produce the following number of hoops each year for each level of capital stock shown.       Number of Fabricators Number of hoops produced per year 0 0 1 100 2 150 3 180 4 195 5 205 6 210   Hula hoops have a real value of 1 $ each. HHHHC has no other costs of Fabricators.   Find the expected future marginal product of capital (MPKf) in terms of Dollars for each level of capital. If the real interest rate is 12 % per year and the depreciation rate of capital is 20 % per year, find the user cost of capital. How many fabricators should HHHHC buy? Repeat part (b) for real interest rate of 8 % per year. Repeat part (b) for a 40 % tax on HHHHC sales revenue. A technical innovation doubles the number of hoops a fabricator can produce. How many fabricators should HHHHC buy when the real interest rate is 12 % per year? 8 % per year? Assume that there are no taxes and the depreciation rate is still 20 % per year

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