Please assist with E and F Suppose a farmer is using two inputs, labour (L) and capital (K), to produce the same amountof wheat (i.e. 100 tons of wheat). The production function is given by L0.5 + K0.33a) Discuss any three (3) characteristics of the model described above.b) Explain how it would be possible for a farmer to use L and K to produce the sameamount of wheat.c) Derive MPP of L and MPP of K.d) Determine the marginal rate of substitution of L and K.Prove, algebraically, that the Marginal Rate of Substitution (MRS) between L and Kisgiven by MRSLK = -MPPL/MPPK.f) Explain why the total change in wheat output along the isoquant curve is equal to zero.

Given Production function: Y=L0.5+K0.33 .... (1) We have to show that the marginal rate of…

e) Prove, algebraically, that the Marginal Rate of Substitution (MRS) between L and K is given by MRSLK = -MPPL/MPPK. f) Explain why the total change in wheat output along the isoquant curve is equal to zero.

e) Prove, algebraically, that the Marginal Rate of Substitution (MRS) between L and K is given by MRSLK = -MPPL/MPPK. f) Explain why the total change in wheat output along the isoquant curve is equal to zero.

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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