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ECO 570 Assignment 3B_BRYSON_VICTOR

# ECO 570 Assignment 3B_BRYSON_VICTOR - Victor Bryson ECO 570...

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Victor Bryson ECO 570 Assignment 3b April 25, 2010 A. Do the two inputs exhibit the characteristics of constant, increasing, or decreasing marginal rates of technical substitution? How do you know? The two inputs exhibit the characteristics of decreasing marginal rates of technical substitution This can be inferred from the fact that as per calculations below marginal product decreases in the direction of arrow TABLE 1 Marginal product keeping X constant Units of Y Used 5 22 33 36 45 49 4 26 38 42 52 61 3 32 46 48 52 55 2 36 58 72 84 95 1 94 130 162 188 210 1 2 3 4 5 Units of X used Marginal product decreases in the direction of arrow TABLE 2 Marginal product keepingY constant Units of Y Used 5 210 95 55 61 49 4 188 84 52 52 45 3 162 72 48 42 36 2 130 58 46 38 33 1 94 36 32 26 22 1 2 3 4 5 Units of X used

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Victor Bryson ECO 570 Assignment 3b April 25, 2010 Marginal product decreases in the direction of arrow B. Assuming that output sells for \$3 per unit, complete the following tables: X Fixed at 2 Units
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ECO 570 Assignment 3B_BRYSON_VICTOR - Victor Bryson ECO 570...

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