Answered: If the production function is F(K,L) =…

If the production function is F(K,L) = AKºL¹-ª , then the Marginal Rate of Technical substitution does not vary with K and L as long as the ratio is held constant. True False K L

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 2WNG

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Question

If the production function is
F(K, L) = AKºL¹-0
, then the Marginal Rate of Technical substitution does not vary with K and L as long
as the ratio
is held constant.
True
False
K
L

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Step 1: Determine the Marginal Rate of Technical Substitution (MRTS)

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Step 2: Determine the partial derivative of the production function

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