The accompanying figure shows the isoquant for producing 1,000 units.a. At point A in the figure, the marginal rate of technical substitution (MRTS) is_________.b. At point A in the figure, increasing labor usage by 1 unit requires that the manager ____________(increase, decrease) capital usage by (approximately) __________units to keep the level of production at exactly 1,000 units.

c. If the marginal product of the 45th unit of capital is 80, then the marginal product of the 60th unit of labor is ________.

Transcribed Image Text:

60 A 45 T' Q = 1,000 60 240 Labor (4) Capital (K)