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The production function is:Q=ALaKb where a > 0 and b > 0. The marginal product of labor is: The marginal product of labor is: The
The production function is:Q=ALaKb where a > 0 and b > 0.
- The marginal product of labor is:
- The marginal product of labor is:
- The marginal rate of technical substitution is:
- Show that the isoquants for this production function are convex. (Show that MRTS diminishes as L increases. Why?)
- Derive the equation for the long-run expansion path.
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
