Using the graph you have constructed for Question 2, calculate the marginal rate of technical substitution for the output level Q 5110 when the firm moves from a combination of 3 machine hours of capital and 1 person hour of labour, to 1 machine hour of capital and 3 person hours of labour.

Data from in question 2

Look at the table of quantities below and sketch the isoquants implied by the data for the output levels Q 5110, Q 5150 and Q 5180. On your graph, put capital on the vertical axis and labour on the horizontal axis.

Transcribed Image Text:

Capital (Machine hours per day) 12345 Labour (person hours per day) 1 2 3 4 5 40 80 110 130 150 80 120 150 170 210 110 150 180 200 220 130 170 200 220 230 150 180 210 230 240