Refer to the following figure:
The price of capital is $50 per unit.
-What is the marginal rate of technical substitution at each cost minimizing equilibrium point?
A) 0.80
B) 0.40
C) 2.50
D) 2.00
E) impossible to tell without marginal products

Question

Refer to the following figure:
  The price of capital is $50 per unit.
-What is the marginal rate of technical substitution at each cost minimizing equilibrium point?
A) 0.80 
B) 0.40 
C) 2.50 
D) 2.00 
E) impossible to tell without marginal products

Quizplus · Accepted Answer

The Answer of Refer to the following figure:
  The price of capital is $50 per unit.
-What is the marginal rate of technical substitution at each cost minimizing equilibrium point?
A) 0.80 
B) 0.40 
C) 2.50 
D) 2.00 
E) impossible to tell without marginal products

Refer to the Following Figure