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Consider the following table which pertains to a manufacturer of custom hiking boots in the short-run. The company uses materials and human labor to produce

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Consider the following table which pertains to a manufacturer of custom hiking boots in the short-run. The company uses materials and human labor to produce the hiking boots. Use this table to answer questions 17 and 18. 0 5 0 1 5 7 T T 2 5 20 10 13 3 5 30 10 10 4 5 36 9 6 5 5 35 T -1 6 5 30 5 -5 17. At what combination of capital and labor does diminishing marginal returns set in? (a) 6K and 5L (b) 5K and 5L (0) 4K and 5L ((1) 3K and 5L 18. At what combination of capital and labor will it become irrational for a producer to keep producing? (a) 6K and 5L (b) 5K and 5L (c) 4K and 5L (cl) 3K and 5L 19. Which of the following does m describe the slope of an isoquant? (a) The marginal rate of technical substitution; the amount by which one input can be substituted for another, output held constant. (b) The marginal rate of substitution; the amount by which one good can be exchanged for another and the consumer remains completely indifferent and equally satisfied. (c) The marginal rate of technical substitution; the ratio of the increase in output per unit of labor to the increase in output per unit of capital. (d) The marginal rate of technical substitution; the ratio of the marginal product of labor to the marginal product of capital

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