Consider the production function $Q = 5 K + 10 L$ . The $MR T S_{L ,K}$=
is
A) 2.00
B) 1.50
C) 1.00
D) 0.50

Question

Consider the production function $Q = 5 K + 10 L$ . The $MR T S_{L ,K}$=
 is
A) 2.00
B) 1.50
C) 1.00
D) 0.50

Quizplus · Accepted Answer

The marginal rate of technical substitution (MRTS) is the rate at which one input can be substituted for another while keeping output constant. In this case, the MRTS is equal to the ratio of the marginal product of labor (MPL) to the marginal product of capital (MPK). The MPL is equal to the change in output (Q) divided by the change in labor (L), and the MPK is equal to the change in output (Q) divided by the change in capital (K).Substituting the given production function into these equations, we get:MPL = dQ/dL = 10MPK = dQ/dK = 5Therefore, the MRTS is equal to:MRTS = MPL/MPK = 10/5 = 2.00So the correct answer is A) 2.00.

Consider the Production Function Q=5K+10LQ = 5 K + 10 LQ=5K+10L

Consider the Production Function $Q = 5 K + 10 L$