PL#1\" PK\"17, P-14 and C-2310 What is the amount of maximized profits? QUESTION
ID: 1173635 • Letter: P
Question
PL#1" PK"17, P-14 and C-2310 What is the amount of maximized profits? QUESTION 22 If the change in labor is -79 and MRTS is -33. What is the change in capital? (hint: enter your answer using a positive number) QUESTION 23 Belfast Company produces bicycles using labor (L) and capital (K), Its production function is given by the following expression Q 32L 19 K where Q is the output of bicycles. The prices of labor (PL), capital (PK), bicycle (P) and the cost (C) are the following PLx7, PK-45 ?=73 ?#2,018 What is the slope of Belfast's Isocost line? Click Save and Submit to save and submit. Click Save All Answers to save all answers.Explanation / Answer
22) MRTS = change in capital / Change in labor
-33 = change in capital / -79
Hence change in capital = -79 x -33 = 2607
23) Slope of isocost line is the wage rental ratio which is given by -PL/PK = -7/45 = -0.156.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.