6.14. Consider the following production functions and their associated marginal products. For each production function, determine the marginal rate of technical substitution of labor for capital, and indicate whether the isoquants for this production function exhibit diminishing marginal rate of technical substitution.

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6.14. Consider the following production functions and their associated marginal products. For each production function, determine the marginal rate of technical substitution of
labor for capital, and indicate whether the isoquants for this production function exhibit diminishing marginal rate of technical substitution.
Diminishing Diminishing
Diminishing
Marginal
Marginal
Marginal
Rate of
Production
Product of
Product of
Technical
Function
MPL
MPK
MRTSLK
Labor?
Capital?
Substitution?
Q = L + K
MPL
MPK = 1
= 1
1 VK
2 VI
1 VL
MPK =
2 VK
Q = VIK
MPL =
1 1
2 VK
11
Q = Vī + VK
MPL
MPK =
2 VI
Q = L'k?
MPL = 3L?K?
MPK = 3L°K?
Q = L? + K?
MP.
= 2L
MPK
= 2K
Transcribed Image Text:6.14. Consider the following production functions and their associated marginal products. For each production function, determine the marginal rate of technical substitution of labor for capital, and indicate whether the isoquants for this production function exhibit diminishing marginal rate of technical substitution. Diminishing Diminishing Diminishing Marginal Marginal Marginal Rate of Production Product of Product of Technical Function MPL MPK MRTSLK Labor? Capital? Substitution? Q = L + K MPL MPK = 1 = 1 1 VK 2 VI 1 VL MPK = 2 VK Q = VIK MPL = 1 1 2 VK 11 Q = Vī + VK MPL MPK = 2 VI Q = L'k? MPL = 3L?K? MPK = 3L°K? Q = L? + K? MP. = 2L MPK = 2K
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