Suppose the production function for a firm is given by: q=2L +4K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK). (Round to the nearest two decimal places if necessary.)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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Lesson 8 - Costs

Question 12

Suppose the production function for a firm is
given by: q=2L +4K. If the firm currently has
20 units of capital (K) and 10 units of labor (L),
then calculate the Marginal Rate of Technical
Substitution (MRTSLK).
(Round to the nearest two decimal places if
necessary.)
Transcribed Image Text:Suppose the production function for a firm is given by: q=2L +4K. If the firm currently has 20 units of capital (K) and 10 units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRTSLK). (Round to the nearest two decimal places if necessary.)
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