QUESTION 8 A / w Suppose that a production function is given by F(K, L) = (21 3 + 34 3 ) 3 in which case the marginal products will be given by MPL = and MPK = 2 2 2L 3 + 3K w/ 2 2L + 3K respectively. What is the marginal rate of technical substitution at (K,L) = (8, 1), and what is the interpretation? O MRS = - which means that in order to maintain a production level of roughly 7.2, then giving up four units of capital would require an extra three units of labor. MRS = - 4 which means that in order to maintain a production level of roughly 7.2, then giving up four units of labor would require an extra three units of capital. MRS = - which means that in order to maintain a production level of roughly 6, then giving up four units of capital would require an extra three units of labor. O MRS = - which means that in order to maintain a production level of roughly 6, then giving up four units of capital would require an extra three units of labor