7. Evaluate MPK and MPL for the production function Q= 2LK + sqrtL given that the current levels of K and L are 7 and 4,
Posted: Tue Nov 16, 2021 7:06 am
7. Evaluate MPK and MPL for the production function Q= 2LK
+ sqrtL given that the current levels of K and L are 7 and 4,
respectively. Hence
(a) write down the value of MRTS;
(b) estimate the increase in capital needed to maintain the
current level of output given a 1-unit decrease in labour
+ sqrtL given that the current levels of K and L are 7 and 4,
respectively. Hence
(a) write down the value of MRTS;
(b) estimate the increase in capital needed to maintain the
current level of output given a 1-unit decrease in labour