IV. Will can produce a higher grade, Gw, on an upcoming economic exam by studying. His production function depends on the number of hours he studies marginal analysis problems, A, and the number of hours he studies supply and demand problems, R. Specifically, Gw = 2.5A0.36R 0.64. His roommate David's grade production function is G) = 2.5A0.25R0.75 a. What is Will's marginal productivity from studying supply and demand problems? What is David's? b. What is Will's marginal rate of technical substitution between studying the two types of problems? What is David's?
IV. Will can produce a higher grade, Gw, on an upcoming economic exam by studying. His production function depends on the number of hours he studies marginal analysis problems, A, and the number of hours he studies supply and demand problems, R. Specifically, Gw = 2.5A0.36R 0.64. His roommate David's grade production function is G) = 2.5A0.25R0.75 a. What is Will's marginal productivity from studying supply and demand problems? What is David's? b. What is Will's marginal rate of technical substitution between studying the two types of problems? What is David's?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:IV.
Will can produce a higher grade, Gw, on an upcoming
economic exam by studying. His production function depends
on the number of hours he studies marginal analysis problems,
A, and the number of hours he studies supply and demand
problems, R. Specifically, Gw = 2.5A0.36R 0.64. His roommate
David's grade production function is G) = 2.5A0.25R0.75
a. What is Will's marginal productivity from studying
supply and demand problems? What is David's?
b. What is Will's marginal rate of technical substitution
between studying the two types of problems? What is
David's?
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