# Answer on Microeconomics Question for mulugeta

Question #30116

4. Given the following production and cost function

Given by Y=15L0.4 K0.5 (Production function)

C=W1L+W2K+100 (Cost Function)

Where L= labor, K= capital,

A) Compute the following

i. APPL (2 points)

ii. APPK (2 points)

iii. MPPL (2 points)

iv. MPPK (2 points)

v. Marginal rate of technical substitution of labour for capital /MRTSLK(2 points)

vi. Expansion path (2 points)

vii. Elasticity of substitution (2 points)

viii. Return to scale (2 points)

ix. Indicate the relationship between elasticity of substitution and scale. (2 points)

Given by Y=15L0.4 K0.5 (Production function)

C=W1L+W2K+100 (Cost Function)

Where L= labor, K= capital,

A) Compute the following

i. APPL (2 points)

ii. APPK (2 points)

iii. MPPL (2 points)

iv. MPPK (2 points)

v. Marginal rate of technical substitution of labour for capital /MRTSLK(2 points)

vi. Expansion path (2 points)

vii. Elasticity of substitution (2 points)

viii. Return to scale (2 points)

ix. Indicate the relationship between elasticity of substitution and scale. (2 points)

Expert's answer

Need a fast expert's response?

Submit orderand get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

## Comments

## Leave a comment