(Figure: Capital and Labor XVI) Consider the production function Q = L^0.5K^0.5, with MP_K = L^0.5/K^0.5 and MP_L = K^0.5/L^0.5.
a. Define the marginal rate of technical substitution.
b. Calculate the marginal rate of technical substitution for K = 5 and L = 10.
c. Figure 6.16 shows an isoquant based on the production function referred to in the question. Calculate the slope of the isoquant at point A and point B.

Question

(Figure: Capital and Labor XVI) Consider the production function Q = L^0.5K^0.5, with MP_K = L^0.5/K^0.5 and MP_L = K^0.5/L^0.5.

(Figure: Capital and Labor XVI) Consider the production function Q = L<sup>0.5</sup>K<sup>0.5</sup>, with MP<sub>K</sub> = L<sup>0.5</sup>/K<sup>0.5</sup> and MP<sub>L</sub> = K<sup>0.5</sup>/L<sup>0.5</sup>. a. Define the marginal rate of technical substitution. b. Calculate the marginal rate of technical substitution for K = 5 and L = 10. c. Figure 6.16 shows an isoquant based on the production function referred to in the question. Calculate the slope of the isoquant at point A and point B.

a. Define the marginal rate of technical substitution.
b. Calculate the marginal rate of technical substitution for K = 5 and L = 10.
c. Figure 6.16 shows an isoquant based on the production function referred to in the question. Calculate the slope of the isoquant at point A and point B.

Quizplus · Accepted Answer

The Answer of (Figure: Capital and Labor XVI) Consider the production function Q = L^0.5K^0.5, with MP_K = L^0.5/K^0.5 and MP_L = K^0.5/L^0.5. a. Define the marginal rate of technical substitution. b. Calculate the marginal rate of technical substitution for K = 5 and L = 10. c. Figure 6.16 shows an isoquant based on the production function referred to in the question. Calculate the slope of the isoquant at point A and point B.

(Figure: Capital and Labor XVI) Consider the Production Function Q