Evaluate MP K and MP L for the production function Q = 2LK +L given that the
Question:
Evaluate MPK and MPL for the production function
Q = 2LK +√L
given that the current levels of K and L are 7 and 4, respectively. Hence
(a) write down the value of MRTS;
(b) estimate the increase in capital needed to maintain the current level of output given a 1-unit decrease in labour.
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Q2LK 1 MPK MP 8 MP 14 K a MRT...View the full answer
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