Let's suppose that a firm's production technology is represented by the following production function
q = F( K, L) = min { 2K, L }
What is the MRTS when 2K > L
a. Infinite
b. 0
c.
1/2
d. 2
What is the MRTS when
a. 0
b. 1/3
c. infinite
d. 2
Pink color L shaped curve is IsoQuant
So MRTS is Slope of isoquant
A) option A) infinite
when 2K> L, then Vertical segment of IC
So Slope of Isoquant = infinity
.
B) option A) zero
if 2K < L
Then horizontal segment,
So Slope = 0
Let's suppose that a firm's production technology is represented by the following production function q =...
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