Any help would be much appreciated thankyou 6.12. Suppose the production function is given by the following equation (where a and b are positive constants): Q= aL + bK. What is the marginal rate of technical substitutionof labor for capital (MRTSL, K) at any point along an isoquant?

The utility function shows L and K are perfect substitutes and MRTS for perfect substitutes is…

Answered: 6.12. Suppose the production function…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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Consider the following equation Q = f(K, L) = K0.7 L0.3 Find (a) MRTS of labor for capital (b) Show that the production function above is homothetic (c) Returns to scale (d) Equation representing an isoquant and show that it is convex to the origin (e) Elasticity of substitution (f) Output elasticities of factors
Suppose that a firm's only variable input is labor. The firm increases the number of employees from four to five, thereby causing the weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week. What is the marginal product of hiring five workers instead of four? What is the weekly wage rate earned by the fifth worker?
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6.12. Suppose the production function is given by the following equation (where a and b are positive constants): Q = aL + bK. What is the marginal rate of technical substitution of labor for capital (MRTSL,K) at any point along an isoquant?