Explain why the marginal rate of technical substitution is likely to diminish as more and more labor

Question:

Explain why the marginal rate of technical substitution is likely to diminish as more and more labor is substituted for capital.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

See More Books

Question Posted: Dec 22, 2015 02:20 AM

See More Questions

Explain the term marginal rate of technical substitution. What does a MRTS = 4 mean?
The production function is Q = ALa Kb, where a > 0 and b > 0. a. The marginal product of labor is MPL = __________________ . b. The marginal product of capital is MPK = __________________ . c. The...
Suppose that a firms production function is q = 10L1/2 K1/2 . The cost of a unit of labor is $20 and the cost of a unit of capital is $80. a) The firm is currently producing 100 units of output and...
Watch the sample Persuasive Presentation Video link given in this module on Success is a Continuous Journey by Richard St. John .Answer the following questions in detail and use complete sentences....
Refer to the information in QS. Assign costs to the assembly departments outputspecifically, the units transferred out to the painting department and the units that remain in process in the assembly...
The following graph came from the JMP statistical package applied to the data in Table 5.3 on length of hospitalization. Notice the boxplot on the top of the figure. How does that boxplot compare...
Definir las redes sociales y describir cmo se diferencian de los medios de publicidad tradicionales . OA2
There are three factories on the Momiss River. Each emits two types of pollutants, labeled P1 and P2, into the river. If the waste from each factory is processed, the pollution in the river can be...
Walsh Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: $ Variable costs per unit: Manufacturing: Direct materials...
a. To simplify the analysis, assume for now that there is virtually no turnaround time between flights so the next flight can begin as soon as the current flight ends. (If an immediate next flight is...
What is a production function? How does a long-run production function differ from a short-run production function?
Is it possible to have diminishing returns to a single factor of production and constant returns to scale at the same time? Discuss.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn. The Uniform Commercial Code states that additional consideration is always required in the...
After further negotiation Roger and Benedicta agreed to use standard preferred stock after all. In her counter-offer, however, Benedicta has proposed that her shares pay cumulative non-cash dividends...
Use the Empirical Rule to answer the questions below: The distribution of weights for newborn babies is approximately normally distributed with a mean of 7.5 pounds and a standard deviation of 0.6...
Assessment Coversheet Unit/s assessed FNSTPB503 Apply Legal Principles in Contract and Consumer Law Assessment name FNSTPB503 Assignment Type of Assessment This summative assessment will enable your...
Question 1 (35 Points) A soil profile is provided below. The estimated stresses from a spread footing overlying a 10 meter thick normally consolidated clay layer are: 180.0 kN/sq m (top of the clay...
HR managers should have a seat at the strategic management table, but only when they earn it. Discuss.
A Firm intends to invest some capital for a period of 15 years; the Firm's Management considers three Options, each consisting of purchasing a machinery of a specific brand, different for each...
Mergers and acquisitions usually do not benefit the acquiring firms equityholders. Why will mergers and acquisitions still exist?
1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...
1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...
1. The private cost of production includes the amount a firm pays for _______, _______, and_______. 2. The external cost of production is the cost incurred by _______. 3. The social cost of...
Questien It Calraluta bae neark yoe cen atforal to berren
In calculating the net present value of a proposed project, the cash flows of the project should include a.) amortization of goodwill b.) interest expenses paid to bondholders c.) extra working...
If Yolanda's insurance company cancels her fire insurance policy after 204 days, how much of the $682.00 annual premium will she receive as a refund (in $)? (Round you answer to the nearest cent.) $

Explain why the marginal rate of technical substitution is likely to diminish as more and more labor

Question:

Step by Step Answer:

As more and more labor is substituted for capital it becomes increasingly ...View the full answer

Microeconomics

Students also viewed these Economics questions