Question: Consider the production function Q = 2(KL) 0.5 What is the marginal product of labour and capital. What is the marginal rate of technical substitution

Consider the production function Q = 2(KL)0.5

  1. What is the marginal product of labour and capital.
  2. What is the marginal rate of technical substitution of labor for capital.
  3. What is the elasticity of substitution at a point K = 1, L = 1 if we increase K by one unit?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Question 1 Suppose that the quantity of corn supplied depends on the price of corn (P) and the amount of rainfall (R). The demand for corn depends on the price of corn and the level of disposable...

Q:

Consider the production function Q = 2(KL) 0.5 a) What is the marginal product of labour and capital (1 marks) b) What is the marginal rate of technical substitution of labor for capital (2 marks) c)...

Q:

Question 3 (5 marks) Tetrfs utility.r function over leisure (L) and other goods (Ki is U (L, I") = F+LK The associated marginal utilities are M'U = l + L and MUL = Y. He purchases other goods at a...

Q:

Question 4 (5 marks) Consider the production lnction Q = 2(KL) 0-5 a) What is the marginal product of labour and capital (1 marks) b) What is the marginal rate of technical substitution of labor for...

Q:

Given the following production function Q = 10k^1/3 L^2/3.Find marginal product of labour, marginal product of capital and Marginal rate of technical substitution.

Q:

Suppose that a firm's technology can be described by the production function q = KL . 1. What would be the marginal product of labor? 2. What would be the marginal product of capital? 3. What would...

Q:

help needed 1. Consider the production function given by 9= (1+L-K-1)-1. (a) Determine the marginal products of labour and capital. (b) Determine the marginal rate of technical substitution. (c) Show...

Q:

2. A firm uses both labor and capital to produce the output and has a production function q(K, L) = KL. (a) What is the marginal product of labor, i.e., MPL? Does it exhibit diminishing marginal...

Q:

A) Given a Cobb - Douglas production function Q = 150K0.5L 0.5 , show that when the average product of labour (APL) is at a maximum it is equal or identical to the marginal product of labour (MPL)....

Q:

0.0 Problem 3 (5 points) Consider the production function "isoquant": Q (K,L)= KU'TLO'2 = 4.29, where K, L, and Q are capital input, labor input and the level of output, respectively. Calculate the...

Q:

Financing Analysis In order to launch the new gadget line, Acme is securing investor financing to cover the first year of fixed costs from private investors. A first private investor is willing to...

Q:

Define the roles of empathy, culture, multiculturalism, and diversity in the helping relationship. Discuss their key characteristics and identify how a counselor can actively develop each and how...

Q:

9. If n jobs have to be processed on m stations in the same order, the problem can be converted to a n job 2 stations and Johnson's Rule applied if: (a) The maximum processing time on the first...

Q:

The element of ASA theory that is represented by job applicants who are chosen because they are perceived to "fit in " is known as

Q:

1. To take in the necessary information,

Q:

7. Find four examples that illustrate the statement: Beyond a certain point, open-ness regarding information and communication can become detrimental to relationships.

Q:

2. In this chapter, the reader should reflect on the following concepts: