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Take this paragraph: If Angela worked a little more she'd only need a little more grain to have the energy to work longer, because the
- Take this paragraph: "If Angela worked a little more she'd only need a little more grain to have the energy to work longer, because the biological survival constraint is relatively flat at 8 hours of work. But the feasible frontier is steep, so she would produce a lot more if you imposed longer hours."
- Explain what is meant by "biological survival constraint is relatively flat" in marginal terms.
- Explain what is meant by "feasible frontier is steep" in marginal terms.
- Take the above two and explain "worked a littlemore, she'd only need a little more grain to have the energy to work longer."
- Insert the correct sign (<, >, =) below that accurately describes the paragraph above:
- MRS __ MRT
- When MRS > MRT what does that mean for the marginal unit for both marginal rate of transformation and marginal rate of substitution?
- Explain why it is optimal when MRT equals MRS. Your answer must include the use of "marginal". Note, you may have already answered part of this in a previous question
- What do we call it when MRT=MRS
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