The production function is Q = ALa Kb, where a > 0 and b > 0. a.

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The production function is Q = ALa Kb, where a > 0 and b > 0.

a. The marginal product of labor is MPL = __________________ .

b. The marginal product of capital is MPK = __________________ .

c. The marginal rate of technical substitution is MRTS = __________________ .

d. Show that the isoquants for this production function are convex.

e. Derive the equation for the long-run expansion path.

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Managerial Economics Foundations of Business Analysis and Strategy

ISBN: 978-0078021718

11th edition

Authors: Christopher Thomas, S. Charles Maurice

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Question Posted: Nov 18, 2014 04:21 AM

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The production function is Q = ALa Kb, where a > 0 and b > 0. a.

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a MP L aAL a1 K b b MP K bAL a K b1 c MRTS aK bL d If the iso...View the full answer

Managerial Economics Foundations of Business Analysis and Strategy

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