What is the MRTS for a firm with the following production function, q
What is the MRTS for a firm with the following production function, q = 10L0.5K0.3?
A) MRTS = 5K/3L
B) The firm will substitute a constant 3 units of capital for 5 units of labor.
C) The MRTS does not exist because labor and capital are perfect complements.
D) None of the above.
ANSWER
A
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