Suppose the long run production function is given by: Q = 4*L +2K2. Marginal product of labor (MPL) = 4 and wage is $10. Marginal product of capital (MPK) = 4K and price of capital (K) is $10. Consider the allocation labor (L) = 10 and capital (K) = 2. Based on information, the MRTS is equal to:
a. 4
b. 2.5
c. 1
d. 0.5
Answers: 3
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Suppose the long run production function is given by: Q = 4*L +2K2. Marginal product of labor (MPL)...
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