Cant do any of this one:confused:

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- Aug 15th 2007, 03:51 AMneedhelpsobadMarginal rate of technical substitution
Cant do any of this one:confused:

- Aug 15th 2007, 09:33 AMTKHunny
Your text must have a definition of MRTS. Please provide that definition and then demonstrate how to use it.

Find the Partial Derivative and plug them in. Just keep track of all the other parameters floating around. They are to be treated as any other constant while finding the partial derivative. - Aug 16th 2007, 10:01 AMneedhelpsobad
Yes i know you need to find MPL and MPK but how do you use the A in the equation

- Aug 16th 2007, 05:21 PMTKHunny
Hmpf... "A" just looks like some constant that must be supplied by the problem statement, estimated with empirical data, or somehow pulled out of a hat.

Okay, one tiny hint. The MRTS refers to exchange of inputs to achieve CONSTANT production. It seems if we write the production equation as shown above, or if we divide by "A", it makes no difference to the MRTS. Thus, it is good that it is suggested to show the MRTS to be independent of "A".