If capital increases by two units, and MRTS is 1, then what is the MP_L? A)2 B)1/2 C)1 D)Not enough information given.

Name: If capital increases by two units, and MRTS is 1, then what is the MP L ? A)2 B)1/2 C)1 D)Not enough information given.
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Quizplus · Accepted Answer

The given information is not sufficient to calculate the MP_L. More information, such as the change in labor or the production function, is needed to calculate the marginal product of capital and firm output before and after the increase in capital.

If Capital Increases by Two Units, and MRTS Is 1