Given the production function \( Q(L, K) = L^2 - 2KL + 2K^2 \) , where L and K represent the labour and capital respectively. (i) find out the…
BBA Business Mathematics II · 2023 · Solved Question with Answer
Given the production function \( Q(L, K) = L^2 - 2KL + 2K^2 \), where L and K represent the labour and capital respectively.
(i) find out the marginal products of labour and capital when the investments on labour and capital are 30 units and 20 units respectively
(ii) Find out marginal rate of technical substitution (MRTS)
(iii) estimate the increase in capital needed to maintain the current level of output when a unit decrease in labour is 0.08.