11.5 Suppose that q LK 0 1, 0 1, 1....
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11.5 Suppose that q LK 0 1, 0 1, 1.
a. Show that eq,L , eq,K .
b. Show that MPL 0, MPK 0; 2 q/L2 0, 2 q/K 2 0.
c. Show that the RTS depends only on K/L, but not on the scale of production, and that the RTS (L for K ) diminishes as L/K increases.
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Related Book For
Microeconomic Theory Basic Principles And Extensions
ISBN: 9780324270860
9th Edition
Authors: Walter Nicholson
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