1. An isoquant that is convex to the origin has a diminishing marginal rate of t

Question

1. An isoquant that is convex to the origin has a diminishing marginal rate of technical substitution. Find the marginal rate of technical substitution between K and L for the following production functions: (4 points) a. i. Cobb-Douglas: = AKal® ii. Constantelasticity of substitution: N=A(aT+(14)LP)1/p iii. Linear:aK+ bl titution 8. Ala + (1a)pp, b. Demonstrate mathematically whether each production function above exhibits a diminishing marginal rate of technical substitution. Include in your answer an explanation of diminishing marginal rate of technical substitution. (4 points) c. Explain whether diminishing marginal productivity is necessary for a diminishing marginal rate of technical substitution. (2 points)

Explanation / Answer

Ans a The correct answer is option A.

Ans b. The correct answer is option C.

Ans c The correct answer is option B.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.