Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A firm has a production function of Q = KL + L , where MP L = K + 1 and MP K = L

A firm has a production function ofQ=KL+L, whereMPL=K+ 1 andMPK=L. The wage rate (W) is $100 per worker and the rental (R) is $100 per unit of capital. The firm is producing 100 units of output. In the long run, what is the firm's Marginal Rate of Technical Substitution?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Ethics for Scientists and Engineers

Authors: Edmund G. Seebauer, Robert L. Barry

1st Edition

9780195698480, 195134885, 195698487, 978-0195134889

Students also viewed these Economics questions

Question

define an online interview in research

Answered: 1 week ago