Question
At $L=4$ and $K=4,$ the marginal product of labor is 2 and the marginal product of capital is $3 .$ What is the marginal rate of technical substitution? $\mathbf{A}$
Step 1
The MRTS is the rate at which one input (e.g., labor) can be substituted for another (e.g., capital) while keeping the output level constant. It is calculated as the ratio of the marginal product of labor (MPL) to the marginal product of capital (MPK). Show more…
Show all steps
Your feedback will help us improve your experience
Sanchit Jain and 86 other educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
You are given the production function: Q (K,L) = 4K 0.6 L 0.4 a)What is the average product of labour, holding capital fixed at K? Simplify fully [6 marks] b)What is the marginal rate of technical substitution
The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal rate of technical substitution of hours of labor for hours of machine capital is $1 / 4 .$ What is the marginal product of capital?
Suppose that a firm's production function is $q=2 K L,$ where $L$ is labor services and $K$ is capital services, and that $K=3 .$ What are the total product, average product of labor, and marginal product of labor curves?
Firms and Production
Short-Run Production
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD