Consider the following functions: (i) Q=f(K, L) = aL + bkL Q=f(K, L) = aL +...

 

Transcribed Image Text:

Consider the following functions: (i) Q=f(K, L) = aL + bk√L Q=f(K, L) = aL + bk Q = f(K, L) = L + √K Q = f(K,L) = min { ½, E Q=f(K, L) = L²/3 K ¹/2 1 (vi) Q=f(K, L) = L + K² (iv) (v) (vii) Q=f(K, L) = L³ + K3 E Find the MRTSL,K for the above production functions. Does the Law of diminishing MRTSL,K hold? Find the returns to scale for the given production functions. Consider the following functions: (i) Q=f(K, L) = aL + bk√L Q=f(K, L) = aL + bk Q = f(K, L) = L + √K Q = f(K,L) = min { ½, E Q=f(K, L) = L²/3 K ¹/2 1 (vi) Q=f(K, L) = L + K² (iv) (v) (vii) Q=f(K, L) = L³ + K3 E Find the MRTSL,K for the above production functions. Does the Law of diminishing MRTSL,K hold? Find the returns to scale for the given production functions.

Answer rating: 100% (QA)

The question asks to find the marginal rate of technical substitution of labor for capital MRTSLK for the provided production functions and to determine if the Law of Diminishing MRTSLK holds The MRTS... View the full answer