The marginal rate of technical substitution is

Q: There is no difference between the law of diminishing marginal returns and the law of diminishing…

A: The statement that “There is no difference between the law of diminishing marginal returns and the…

Q: An individual’s labour supply curve is positively sloped when: (2) (1) The substitution effect of a…

A: The most important economic determinant of the supply of labour is the work leisure ratio.  Leisure…

Q: What is the marginal rate of substitution at point A? Interpret this value.

A: Formula used: MRSXY = dYdX = MUxMUy

Q: f the price of capital decreases and the demand for labour decreases then Select one: DA. the scale…

A: Economies of scale is the cost advantage which is being experienced by a firm when it tends to…

Q: What is  marginal rate of technical substitution?

A: The substitution is the process of replacing one item with another item which will have the same…

Q: What is technical rate of substitution? Show it graphically

A: Substitution effect: It refers to the effect under which there is reduction in the sales of goods…

Q: A backward-bending labor supply curve occurs when: None of the above a negatively sloped labor…

A: Labor supply curve shows the relationship between the wage rate and the number of workers willing to…

Q: Suppose a firm has two inputs of production, capital K and labour L. The production function is 1 f…

A: Given: MPK=42K-1/2=2K-1/2MPL=42L-1/2=2L-1/2MRTSLK=MPLMPKMRTSLK=2L-1/22K-1/2MRTSLK=KL Formula for…

Q: Given a constant elasticity of substitution (CES) production function as follows: y = [a1x1ρ +…

A: the CES exhibits constant returns to scale It contains other production functions as special…

Q: Define marginal rate of substitution.

A: The marginal rate of substitution(MRS) is a very technical word in economics, defined as the…

Q: Describe the concept of the marginal rate of technical substitution

A: The marginal rate of technical substitution (MRTS) is an economic concept that explains how fast one…

Q: If the economy uses inputs efficiently, then (pls select all that applies) Group of answer choices…

A: The marginal rate of technical substitution is the rate at which the utility of one input is…

Q: The combinations of inputs that produce a given level of output are depicted by isoquants. In…

A: MRTS = MPL /MPK  MPL=  dQ/dL ie the first order partial differentiation with respect to L         =…

Q: Show that the production function f (x1, x2) = a In x1 + B In x2 has elasticity of substitution…

A: The production function is given

Q: Consider the following production functions F(L,K)=LK^3 F(L,K)=L+3K (a) Discuss if each marginal…

A: (a) MPL = ∂Q/∂L = K3 So, MPL is independent of L and is constant. MPK = ∂Q/∂K = 3LK2 So, as K…

Q: What is the difference between the factor demand derived from cost minimization and that obtained…

A: Cost minimization simply means that businesses maximize their productivity or use the least…

Q: Show diagrammatically how a labour supply curve can be backward bending, fully explaining using…

A: A labor supply curve is an individual's labor supply curve which shows the number of hours an…

Q: The marginal rate of technical substitution represents the slope of?

A: If there is two input goods x and y used in the production process, then the marginal rate of…

Q: Consider the case of a firm which produces q units of a single output using two inputs, labour (L)…

A: An isoquant refers to that combinations of inputs which provide same level of output . Slope of an…

Q: Consider a firm that employs capital (K) and labour (L) and uses the production technology Q = 3K +…

A: We have given the cost minimization problem of a firm given the production function and the price of…

Q: Joe owns a small coffee shop. His production function is q = 2K0.5 L where q is the number of cups…

A: Answer - Given in the question- Joe owns a small coffee shop. His production function is q = 2K0.5 L…

Q: A significant property of the Cobb- Douglas production function is that the elasticity of…

A: To find : Elasticity of substitution.

Q: Explain the fact that typical person employed in production worked 55 hours per week in 1900, 40…

A: The labor supply curve is backward bending which means it is positively sloped to a certain level of…

Q: where x and y denote, respectively, the number'of hours of skIlled and current labor force consists…

A: In this question the marginal rate of technical substitution is the rate at which a firm can…

Q: Consider the following production function: Q= 2K + 8L. Capital (K) is on the vertical axis and…

A: MRTS refers to the rate at which capital can be substituted with labor by the firm.

Q: how to find  the marginal rate of substitution for perfect complements

A: Marginal rate of substitution can be defined as the maximum amount of one good which a consumer is…

Q: Decreasing rate of marginal substitution between two inputs occur when the input being added replace…

A: Marginal Rate of substitution is the slope of isoquant which states that how much change in good Y…

Q: The marginal rate of technical substitution is defined by: a. MRTS 2 = MP/P2 b. MRTS 2= MP,MP C.…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: In the long-run with strictly convex isoquants. If the relative price of labor (?⁄?) exceeds the…

A: Answer to the question is as follows :

Q: Suppose that firm's short-run 4 a production function is q=10/T – 1. 5.1 Find the level(s) of…

A: Given:

Q: Q = 4L + 8K = 50K04L0.6 Q = [K0.5L05]3

A: The marginal rate of technical substitution (MRTS) measures the rate at which one input need to…

Q: a) For an output level of 40 units, calculate the marginal rate of technical substitution between…

A: The marginal rate of technical substitution (MRTS) is an economic theory that shows the rate at…

Q: Define and then derive the expression for the marginal rate of technical substitution.

A: Marginal rate of technical substitution (MRTS) measures the rate at which one factor must give up in…

Q: production function of this nature; AX1aX2b determine the Marginal Rate of Technical Substitution.

A: Marginal rate of technical substitution means the rate at which one factor is substitute by other…

Q: There is no difference between the law of diminishing marginal returns and the law of diminishing…

A: Answer: The given statement is false. Explanation: Law of diminishing marginal returns: When a…

Q: Use the graph to answer the questions below. X2 В (3, 4) A (1, 5) Y2 Y1 C(7, 2) 4. Which point has…

A: The curves on the graph are isoquants which different combinations of inputs needed to produce a…

Q: Calculate the elasticity of substitution for the production function

A: elasticity of substitution refers to  the ratio of the two inputs  to a production function with…

Q: The marginal rate of technical substitution of L=2K means that the firm can substitute 2 units of…

A: Given that, The marginal rate of technical substitution of L=2K

Q: Compute the firm's marginal products, and marginal rate of technical substitution. Report the…

A: Given; Production function; f(L,K)=LK Formula to calculate:- MPK=df(L,K)dKMPL=df(L,K)dLMRTS=MPLMPK

Q: Suppose that the production function is ƒ(x1,x2) = (xĩ + x²)º, where a and b are positive constants.…

A: A production function ties the physical output of a production process to its physical inputs or…

Q: If two inputs are perfect substitutes a. The isoquant is a straight line and the MRTS is constant b.…

A: The answer is a. The isoquant is a straight line and the MRTS is constant Therefore, if two inputs…

Q: Consider the following production function q = F (L, K) = L²K What is the marginal rate of…

A: Marginal rate of technical substitution (MRTS): - it is the rate that shows the number of one input…

Q: The production function is Q = K^.6 L^.4. The marginal rate of technical substitution is

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: he income effect of a higher wage outweighs the substitution effect when wages are he income effect…

A: Income effect refers to the change in demand for a good or service caused by a change in the…

Q: The marginal rate of technical substitution is defined by: a. MRTS, 2= MP P b. MRTS, 2= MR,MP, MRTS,…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Florida citrus growers say that the recent crackdown on illegal immigration is increasing the market…

A: The three most important factors of production- land, labour, and capital are used in the production…

Q: in the Firm 8. Understanding the properties of isoquants An isoquant is a curve showing all…

A: a) True The marginal rate of technical substitution is the number of units of capital decreased to…