(a) Explanation Given information: The output of the country is estimated by, Q = 20 x 3 5 y 2 5 (1) Where, x is the amount spent on labor, y is the amount spent on capital and both x and y is measured in billion dollars. The amount of labor expended is $32 and capital expended is $243. Calculation: Substitute 32 for x and 243 for y in equation (1) and simplify, Q = 20 ( 32 ) 3 5 ( 243 ) 2 5 = 20 × ( (b) To determine The changed amount spent on capital while the labor amount is increased by $ 1 billion and explain MRTS.

Applied Calculus for the Managerial, Life, and Social Sciences

10th Edition

ISBN: 9781305887831

Author: Tan

Publisher: CENGAGE CO

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Chapter 3.6, Problem 49E

(a)

To determine

The output of the country on the basis of given expenditure.

(b)

To determine

The changed amount spent on capital while the labor amount is increased by $1billion and explain MRTS.

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Chapter 3.6, Problem 48E

Chapter 3.6, Problem 50E

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Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences

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The output of the country on the basis of given expenditure.

Solution Summary: The author calculates the output of the country on the basis of given expenditure.

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The output of the country on the basis of given expenditure.

The changed amount spent on capital while the labor amount is increased by $1billion and explain MRTS.

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Chapter 3 Solutions