68 374
Assignments Done
98,7%
Successfully Done
In November 2018

Answer to Question #9132 in Economics of Enterprise for Arpita Ghosh

Question #9132
Given the production function:
Q = 100 + P – 0.01P2 + 2N – 0.03N2
Determine the marginal rate of technical substitution
Expert's answer
Marginal Rate of Technical Substitution (or Technical Rate of Substitution) is
the amount by which the quantity of one input (N) has to be reduced when one
extra unit of another input (N2) is used, so that the total output (Q) remains
constant:

MRTS = MP(N2)/MP(N) = -0.03/2= -0.015 – MRTS for the input N
for N2

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

Submit
Privacy policy Terms and Conditions