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Snezhnost [94]
3 years ago
6

The marginal product of labor in the production of computer chips is 3030 chips per hour. The marginal rate of technical substit

ution ​(MRTS​) of hours of labor for hours of machine capital is 0.200.20. What is the marginal product of​ capital?
Business
1 answer:
fredd [130]3 years ago
5 0

Answer:

150

Explanation:

As we know that

The marginal rate of technical substitution ​(MRTS) = Marginal product of labor ÷ Marginal product of capital

where,

The marginal rate of technical substitution ​(MRTS) = 0.20

And, the marginal product of labor is 30 chips per hour

So, the marginal product of capital is

= 30 chips per hour ÷ 0.20

= 150

The marginal rate of technical substitution ​(MRTS​) shows a relationship between the marginal product of labor and the marginal product of capital

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