Consider a production firm whose production function has the isoquant shown in the following graph. K - Isoquant q 8 The isoquant is a downward sloping curve in the L vs K space, that passes through (3/2,3) and (3,3/2). The line tangent to the isoquant at (3/2,3) also passes through (3,0): the line tangent to the isoquant at (3,3/2) also passes through (0,3). What is MRTS(3/2,3)? O 1/2 O 1/2 O 1/3 02 3.
Consider a production firm whose production function has the isoquant shown in the following graph. K - Isoquant q 8 The isoquant is a downward sloping curve in the L vs K space, that passes through (3/2,3) and (3,3/2). The line tangent to the isoquant at (3/2,3) also passes through (3,0): the line tangent to the isoquant at (3,3/2) also passes through (0,3). What is MRTS(3/2,3)? O 1/2 O 1/2 O 1/3 02 3.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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Transcribed Image Text:Consider a production firm whose production function has the isoquant shown in the following graph.
K
Isoquant q 8
%3D
L.
3
The isoquant is a downward sloping curve in the L vs K space, that passes through (3/2,3) and (3,3/2). The line tangent to the
isoquant at (3/2,3) also passes through (3,0): the line tangent to the isoquant at (3,3/2) also passes through (0,3). What is
MRTSLu(3/2,3)?
O 1/2
O 1/2
O 1/3
0 2
...*....... ie
3.
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