Solved

Consider a Production Function of the Form Q=K2L2Q = K ^ { 2 } L ^ { 2 }

Question 87

Multiple Choice

Consider a production function of the form Q=K2L2Q = K ^ { 2 } L ^ { 2 } with marginal products MPK=2KL2\mathrm { MP } _ { \mathrm { K } } = 2 \mathrm { KL } ^ { 2 } and MPL=2 K2 L\mathrm { MP } _ { \mathrm { L } } = 2 \mathrm {~K} ^ { 2 } \mathrm {~L} . What is the marginal rate of technical substitution of labor for capital at the point where K=5\mathrm { K } = 5 and L=5\mathrm { L } = 5 ?


A) 5
B) 25
C) 50
D) 1

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions