Answer:
The correct option is Increase and Decrease respectively
Explanation:
Consider the following production function: q equals 8 LK plus 5 Upper L squared minus (one third )Upper L cubed . Given the fo
llowing expressions for the marginal productivity of each input: MP Subscript Upper L Baseline equals 8 Upper K plus 10 Upper L minus Upper L squared and MP Subscript Upper K Baseline equals 8 Upper L Assuming capital is plotted on the vertical axis and labor is plotted on the horizointal axis, determine the value of the marginal rate of technical substitution when K = 20 and L = 15. (Round your answer up to two decimal places and include the proper sign.) MRTS = nothing.
1 answer:
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