At L = 51, K=78 the marginal product of labor is 4, and the marginal product of capital is 4....
Question:
At L = 51, K=78 the marginal product of labor is 4, and the marginal product of capital is 4. What is the marginal rate of technical substitution ?(labor measured on the horizontal axis)
The marginal rate of technical substitution is _____ (Enter a numeric response using a real number rounded up to two decimal places.)
Marginal Rate of Technical Substitution:
The marginal rate of technical substitution measures the slope of the isoquant curve. The isoquant curve gives different combinations of two inputs, labor and capital, that produce the same output level.
Answer and Explanation: 1
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View this answerThe marginal rate of technical substitution is 1.00
Marginal Rate of Technical Substitution (MRTS) is the ratio of Marginal Product of Labor (MPL)...
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Production Function in Economics: Definition, Formula & Example
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Chapter 11 / Lesson 27
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Learn about the production function. Read the production function definition in economics, learn the production function formula. Plus, see graphs and examples.
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