The marginal rate of substitution between capital and labour

Assignment Help Microeconomics
Reference no: EM13273202

Q=aK+bL, where a and b are the coefficients of capital and labour respectively. Q refers to output, K refers to capital and L refers to labour. show that the marginal rate of substitution between capital and labour is MRTSKL=b/a

Reference no: EM13273202

Questions Cloud

Should equipment be replaced : What question below can be answered by comparing a company's ratios with industry standards?
Determine whether demand is elastic inelastic or unit : Determine whether demand is elastic, inelastic, or unit elastic with respect to its own price and whether Good Y is a substitute or a complement with respect to Good X.
What was the total energy of the radiation jack received : Jack was exposed to fast neutrons; he received a radiation dose of 280rem on part of his hand, affecting 30.0grams of tissue. What was the total energy of the radiation Jack received
What would her cash flow be under the new capital : Rebecca owns $30,000 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow?
The marginal rate of substitution between capital and labour : Q=aK+bL, where a and b are the coefficients of capital and labour respectively. Q refers to output, K refers to capital and L refers to labour. show that the marginal rate of substitution between capital and labour is MRTSKL=b/a
Compute the after-tax cost of each component of capital : The Mortgage bonds are currently selling for $1,073.61. The bonds are 7%, $1,000 par and pay interest annually. They will mature in 10 years.
Compute grams of sodium carbonate required to magnesium ions : Determine the grams of sodium carbonate required to precipitate magnesium ions from water used in one wash cycle of a washing machine. Notes: 1) Assume the concentration of Mg+2 is 165mg/L 2) Estimate the volume of water used in your wash cycle 3)..
What is the interest tax shield : Fleury Co. has a 34 percent tax rate. Its total interest payment for the year just ended was $41.0 million. Required: What is the interest tax shield?
Policymaking is much easier when the state of the economy : Policymaking is much easier when the state of the economy is easily observable than when there is uncertainty about how the economy is doing, as this problem illustrates. Suppose that the economy is either in an expansion or a recession. Suppos..

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain when a nation can enjoy a high standard of living

Most countries, including the united states, import substantial amounts of goods and services from other countries. a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself.

  What is the benefit to a multiscreen theater

What are the benefits of the staggered movie times allowed by multiple screens? What is the benefit to a multiscreen theater of locating at a shopping mall?

  Find the equilibrium when there are no repeated transactions

You and your rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of $3.

  How do we determine what items to buy

what resources do you make use of in order to maximize your level of satisfaction How do we determine what items to buy How do companies decide what items to produce How do firms determine whether to produce something

  Does either company have a first-mover advantage

As a two-stage game using a game tree with Company B going first.  Solve this game and identify the Nash Equilibrium and does either Company have a first-mover advantage?

  How the fed might use three major policy tools to accomplish

What happens to the federal funds rate when the Federal Reserve increases bank excess reserves and the money supply through open market operations What happens to the federal funds rate when the Federal Reserve decreases.

  Solving various pricing questions

As part of the preparations for the arrival of a hurricane, NC residents sought to buy electricity generators. As a result, you expect that in NC

  What is its profit-maximizing rate of production

Firm operates in a perfectly competitive market in which the market price is $10 per unit. What is its profit-maximizing rate of production?

  Marginal private cost exceeds marginal social cost

The output sold by a particular firm may be quite different from the output sold by the other firms in the market

  Computing the concentration ratio

Industry structure is often examine through computing the 4-company Concentration Ratio. Assume you have an industry with 20 firms and the CR is 30 percent.

  How is the surplus divided between groups in the economy

Explain what short-run impact immigration is likely to have on natives' wages and employment when immigrants are a) substitutes to natives and b) complements to natives. Explain also the so-called immigration surplus for the short-run case.

  What kinds of all-or-nothing thinking have you detected

1. Do you agree with the necessity for autonomy as defined by the cognitive theorists Why or why not 2. What kinds of all-or-nothing thinking have you detected in yourself? How will you stop it

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd