Part 1 A firm's production function is given by the equation /(L. K) = 10.00L + 20.00K, where L and K are labor and capital inputs, respectively. What is the technical rate of substitution (TRS) in absolute value for this firm? (Assume that labor is the horizontal axis variable and capital is the vertical axis variable). Part 2 See Hint As the number of laborers increases, the technical rate of substitution Choose one: O A increases. O B. decreases. O C. is constant and does not change. OD. increases then decreases, See Hint
Part 1 A firm's production function is given by the equation /(L. K) = 10.00L + 20.00K, where L and K are labor and capital inputs, respectively. What is the technical rate of substitution (TRS) in absolute value for this firm? (Assume that labor is the horizontal axis variable and capital is the vertical axis variable). Part 2 See Hint As the number of laborers increases, the technical rate of substitution Choose one: O A increases. O B. decreases. O C. is constant and does not change. OD. increases then decreases, See Hint
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Part 1
A firm's production function is given by the equation /(L. K) = 10.00L + 20.00K, where L and K are labor and capital inputs,
respectively.
What is the technical rate of substitution (TRS) in absolute value for this firm? (Assume that labor is the horizontal axis variable
and capital is the vertical axis variable).
Part 2
See Hint
As the number of laborers increases, the technical rate of substitution
Choose one:
O A increases.
O B. decreases.
O C. is constant and does not change.
OD. increases then decreases.
See Hint](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd00261c3-4893-4528-9e55-1c45ae7110ab%2F57a777a5-3219-4a63-9831-db58aa6a3ce8%2Fu8ht945_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Part 1
A firm's production function is given by the equation /(L. K) = 10.00L + 20.00K, where L and K are labor and capital inputs,
respectively.
What is the technical rate of substitution (TRS) in absolute value for this firm? (Assume that labor is the horizontal axis variable
and capital is the vertical axis variable).
Part 2
See Hint
As the number of laborers increases, the technical rate of substitution
Choose one:
O A increases.
O B. decreases.
O C. is constant and does not change.
OD. increases then decreases.
See Hint
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