View the step-by-step solution to:

Question

Consider the following

production​ function:


q = 7LK + 4L2 − (1/3)L3.

Given the following expressions for the marginal productivity of each​ input:


MPL = 7K + 8L − L2 and MPK = 7L


MPK=7L

Assuming capital is plotted on the vertical axis and labor is plotted on the horizointal​ axis, determine the value of the marginal rate of technical substitution when K​ = 20

and L​ = 10

​(Round your answer up to two decimal places and include the proper​ sign.)


MRTS​ = ________________



.

Top Answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question