Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
a) The marginal rate of technical substitution is
MRTS = ΔK/ΔL
If labor input, L, is decreased by one unit, by how much must one increase capital, K, to hold production constant? The answer is given by MRTS. b) To show the relation with the marginal products, we start by the following reasoning: Suppose we increase the input of labor, ΔL, by one unit. Depending on how productive the labor is, this will increase production. The total increase will then be MPL*ΔL = Δq. Suppose we then decrease the input of capital, ΔK, by an amount that makes the associated decrease in production just as large as the previous increase. We then get that MPK*ΔK = -Δq. Summing these two together must give a total change of zero:
MPL*ΔL = Δq MPK*ΔK = -Δq
MPL*ΔL+MPK*ΔK = 0
Now, rearrange the last expression: Move MPK*ΔK over to the right-hand side, and then divide both sides by MPK and by -ΔL. You will then have an expression for MRTS: This is the relation we asked for.
the manager of the aerospace division of general aeronautics has estimated the price it can charge for providing
characterize the long run equilibrium of a perfectly competitive industry in which average costs are U-shaped as output increases, under both restricted and free entry.
Describe the different economic trade reforms developed and adopted in Colombia by the Gaviria and Santos administrations. What were the advantages and disadvantages of those reforms for each time period and what did those reforms ultimately do or no..
Equimarginal principle requires that marginal costs be equated across the two polluters for emissions reduction costs to be minimized.
Continuing from question 1, suppose there is a newcomer (indexed by C) to this (verysmall!) community with the following demand curve for water, P = 30 - 2q
governments have several means available to guide and influence competition in the marketplace. these means include
a consumers utility function is ux y 2xy2 . the price of x is px the price of y is py and the consumers income is i. x
Why are government imposed "average cost pricing" and "nationalization of industries so pricing is at marginal cost" both second best outcomes to the competitive markets? P=MC=min ATC long run equilibrium?
There are many brands of laundry detergent, all equally effective. Would you expect the elasticity of demand for any particular brand to be high or low? Explain.
Let NA = 8 years. The company is expected to be in this business for a long time and it is expected that there will be very little change in technology. To use either the EAW or the PW method to decide which machine is better, what assumption will b..
The theory of the Communists may be summed up in a single sentence: Abolition of private property,” This is from:
Organize Forum Threads on page and apply settings to several or all threads. Threads are listed in a tabular format. The Threads can be sorted by clicking the column title or the caret at the top of each column.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd