Suppose that for an isoquant, if L=3 and K=5, then Q= 10. Is it possible that...
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Suppose that for an isoquant, if L=3 and K=5, then Q= 10. Is it possible that L=3 and K=6 also produce Q= 10 in the economical relevant portion of the isoquant? Why or why not. What will
MPL be equal to?
Homework Answers
Isoquant referes to Equal quantity ( Iso means equal and quant means quantity). it means that different combination of inputs namely capital and labor which produce same level of output. It is also called Equal product curve or production indifference curve.
Slope of Isoquant = MRTSLk
MRTSLK=MPL÷ MPk
shapeandcurvatureofIsoquantdetermineelasticity of substitution. ConvexitydetermineMRTSLK.
Marginal Rate of Technical substitution (MRTS) is the rate at which one input is reduced to increase the use of another input in order to produce same level of output.
Answer:
So it is possible to produce same quantity of 10 by using different combination of inputs namely L=3 & K=5 and L=3 & K =6 in the economical relevant portion of the Isoquant. The marginal productivity of labor is equal to W/P where P is price and W is wage.
MPL=W/P
MPk=R/P where R is rental price on capital and p is price.
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Suppose that for an isoquant, if L=3 and K=5, then Q= 10. Is it
possible that...
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K Isoquant: Q 70 Tangency 8 Isocost: TC - $? 10 Figure 1. Isoquant and Isocost Price of L = $20; Price of K ? ; TC ? 16. Refer to Figure 1. If the price of capital increases while the price of labor is unchanged, which of the following is most accurate? In the new cost-minimizing input combination for producing Q-70, the labor input must be lower than 6. The isoquant of Q = 70 shifts inward. It is...
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4 Consider three points on a firm's isoquant curve corresponding to Q-100; points A, B, and C (a) At point A, L-10, K-20, MPL-3, and MPK-1. Find the slope of the isoquant at point A coluet point B have L-11. Based on your amswer to part(e), what aus ta lepne L-12 Blased on your anser ht vaue ork coepond to point B? Assume that at point B, MPL = 2.5 and MPK = 1.25. What is the slope of the...
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