Author Question: Find the Marginal Rate of Technical Substitution for the following production functions: a. q = ... (Read 108 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
Find the Marginal Rate of Technical Substitution for the following production functions:
 
  a. q = L0.5 K0.5
  b. q = L0.5 + K0.5
  c. q = minK,L
  d. q = L + K

Question 2

Resale is difficult when
 
  A) the good is light-weight.
  B) the good is expensive.
  C) transaction costs are high.
  D) transaction costs are negligible.



zenzy

  • Sr. Member
  • ****
  • Posts: 336
Answer to Question 1

a. K/L
b. K/L
c. - infinity for K > L and 0 for L < K (undefined when K = L)
d. -1

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

For a complete list of videos, visit our video library