Maize is produced according t8 lme q = 100(K° L°) %3D Starting with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing. (i) (ii) Compute the marginal rate of technical substitution of labour for capital. (iii) Does this production function exhibit increasing, decreasing or constant reburns to scale?
Maize is produced according t8 lme q = 100(K° L°) %3D Starting with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing. (i) (ii) Compute the marginal rate of technical substitution of labour for capital. (iii) Does this production function exhibit increasing, decreasing or constant reburns to scale?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4QR
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