The marginal rate of technical substitution of labor for capital (MRTSLK) measures
a. the amount of capital that can replace a unit of labor without affecting the firm's output.
b. the additional output attributable to a 1% increase in labor and capital usage.
c. the rate at which the firm can exchange labor for capital in the input markets.
d. the slope of the firm's expansion path.
a. the amount of capital that can replace a unit of labor without affecting the firm's output.
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Conflicts of interest arising from management advisory services brought down ________ in 2002
A) Enron B) WorldComm C) Arthur Andersen D) Global Crossing
The planning horizon refers to the short run, when the firm must plan how much of a variable input to apply to a fixed input
a. True b. False Indicate whether the statement is true or false
The IRS receives approximately
a. 80 percent of the taxes owed b. 50 percent of the taxes owed c. 40 percent of the taxes owed d. 20 percent of the taxes owed e. 10 percent of the taxes owed
Suppose a firm has a Cobb-Douglas weekly production function Q = F(L, K) = 25L0.5K0.5, where L is the number of workers and K is units of capital. The wage rate is $900 per week, and a unit of capital costs $400 per week. What is the least-cost input combination for producing 675 units of output?
A. L = 18; K = 40.5 B. L = 40.5; K = 18 C. L = 27; K = 60.75 D. L = 27; K = 27