MRTSL,K a

Suppose over time that a firm’s production process undergoes capital-saving technological progress. This implies

(1) the isoquants corresponding to any particular level of output will shift outward from the origin and the MRTSL,K along any ray from the origin will increase.

(2) the isoquants corresponding to any particular level of output will shift outward from the origin and the MRTSL,K along any ray from the origin will decrease.

(3) the isoquants corresponding to any particular level of output will shift inward toward the origin and the MRTSL,K along any ray from the origin will increase.

(4) the isoquants corresponding to any particular level of output will shift inward toward the origin and the MRTSL,K along any ray from the origin will decrease.

why choose（3）？

When a production function can be expressed as q = min{aK, bL}, the relationship between capital and labour in the production function is that

(1) capital and labour are perfect substitutes, and the isoquants are linear.

(2) capital and labour must be combined in fixed proportions, and the isoquants are L-shaped.

(3) capital and labour are easily substituted, and the isoquants are convex to the origin.

(4) capital and labour are perfect substitutes, and the isoquants are L-shaped.

why choose （2）？

Suppose that capital and labour are perfect complements in a one-to-one ratio in a firm’s production function. The firm is currently at an efficient production level, employing an equal number of machines and workers. Suppose the cost of labour were to double and the cost of capital were to fall by half. If the firm wanted to produce the previous level of output, the firm would hire

(1) the same amounts of labour and capital.

(2) twice as much labour as capital.

(3) more labour and less capital.

(4) less labour and more capital.

why choose (1)?

Suppose in a particular production process that capital and labour are perfect substitutes so that three units of labour are equivalent to one unit of capital. If the price of capital is $4 per unit and the price of labour is $1 per unit, the firm should.

(1) employ labour only.

(2) employ capital only.

(3) use three times as much capital as labour.

(4) use three times as much labour as capital.

why choose (1)?

Hide

Scroll Below to View Our Previous Reviews

Calculate the price of your order

Continue with Order
Continue with Order
Continue with Order
Continue with Order

Simple Order Process

Fill in the Order Form

Share all the assignment information. Including the instructions, provided reading materials, grading rubric, number of pages, the required formatting, deadline, and your academic level. Provide any information and announcements shared by the professor. Choose your preferred writer if you have one.

Get Your Order Assigned

Once we receive your order form, we will select the best writer from our pool of experts to fit your assignment.

Share More Data if Needed

You will receive a confirmation email when a writer has been assigned your task. The writer may contact you if they need any additional information or clarifications regarding your task

Let Our Essay Writer Do Their Job

Once you entrust us with your academic task, our skilled writers embark on creating your paper entirely from the ground up. Through rigorous research and unwavering commitment to your guidelines, our experts meticulously craft every aspect of your paper. Our process ensures that your essay is not only original but also aligned with your specific requirements, making certain that the final piece surpasses your expectations.

Quality Checks and Proofreading

Upon the completion of your paper, it undergoes a meticulous review by our dedicated Quality and Proofreading department. This crucial step ensures not only the originality of the content but also its alignment with the highest academic standards. Our seasoned experts conduct thorough checks, meticulously examining every facet of your paper, including grammar, structure, coherence, and proper citation. This comprehensive review process guarantees that the final product you receive not only meets our stringent quality benchmarks but also reflects your dedication to academic excellence.

Review and Download the Final Draft

If you find that any part of the paper does not meet the initial instructions, send it back to us with your feedback, and we will make the necessary adjustments.