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For the Production Function Q = AL + BK, Where MRTSL,KMR T S_{L ,K}

Question 10

Multiple Choice

For the production function Q = aL + bK, where a and b are constants, the MRTSL,KMR T S_{L ,K} =


A) declines as the firm substitutes labor for capital.
B) remains constant as the firm substitutes labor for capital.
C) implies upward-sloping, straight-line isoquants.
D) is undefined.

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