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1 l 2 Suppose that a firm's production function is given by F(K,L) = [35K 2 + 3!. 2] __ in which case the marginal
1 l 2 Suppose that a firm's production function is given by F(K,L) = [35K 2 + 3!. 2] __ in which case the marginal product of capital and labor are given by 1 1 1 1 333'3+3L3 3(33'1+3L1 MPK = 1 and MPL = 1__ respectively. What is the interpretation of the marginal rate of substitution at {K J.) = (4.. 4) ? K 3 L 3 O In order to maintain an ouput level of 144, then reducing the amount of capital used by1 unit would require an additional reduction in 1 units oflabor. O In order to maintain an output level of 144, then reducing the amount of capital used by 1 unit would require an additional 1 units of labor. C In order to maintain an ouput level of 4: then reducing the amount of capital used by 1 unit would require an additional 1 units oflabor. C In order to maintain an ouput level of 4: then reducing the amount of capital used by 1 unit would require an additional reduction of1 units of labor
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