P = aLK¹-b a>0 and 0 < b < 1 dL giving the total production P from L units of labor and K units of capital, along any isoquant (that is, for a fixed production level), dk may be found by implicit differentiation. The absolute value of this derivative is called the marginal rate of technical substitution of labor for capital and is denoted MRTS. Find MRTS for 4096 = 64L2/3K1/3 when L = 64 and K = 64. MRTS = Interpret this value. O At a production level of 4096 units using 64 units of labor and 64 units of capital, each additional unit of labor increases the capital requirements by the value of MRTS units. O At a production level of 4096 units using 64 units of labor and 64 units of capital, changing the amount of labor will not change the capital requirements. O At a production level of 4096 units using 64 units of labor and 64 units of capital, each additional unit of labor reduces the capital requirements by the value of MRTS units. x

P = aLK¹-b a>0 and 0 < b < 1 dL giving the total production P from L units of labor and K units of capital, along any isoquant (that is, for a fixed production level), dk may be found by implicit differentiation. The absolute value of this derivative is called the marginal rate of technical substitution of labor for capital and is denoted MRTS. Find MRTS for 4096 = 64L2/3K1/3 when L = 64 and K = 64. MRTS = Interpret this value. O At a production level of 4096 units using 64 units of labor and 64 units of capital, each additional unit of labor increases the capital requirements by the value of MRTS units. O At a production level of 4096 units using 64 units of labor and 64 units of capital, changing the amount of labor will not change the capital requirements. O At a production level of 4096 units using 64 units of labor and 64 units of capital, each additional unit of labor reduces the capital requirements by the value of MRTS units. x

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter7: Analytic Trigonometry

Section7.6: The Inverse Trigonometric Functions

Problem 91E

See similar textbooks