Suppose production function: X=(4K)^1/3(L)^2/3 a. Are the function's 2nd cross partial derivatvies equal? b. Compute for
Posted: Mon Apr 18, 2022 9:19 am
Suppose production function: X=(4K)^1/3(L)^2/3
a. Are the function's 2nd cross partial derivatvies
equal?
b. Compute for RTS or the marginal rate of technical
substitution. Interpret the result.
c. If, however, a function's RTS or the slope of isoquant is
equal to 1K/4L, how much labor is substituted for capital?
a. Are the function's 2nd cross partial derivatvies
equal?
b. Compute for RTS or the marginal rate of technical
substitution. Interpret the result.
c. If, however, a function's RTS or the slope of isoquant is
equal to 1K/4L, how much labor is substituted for capital?