Marginal Rate of Substitution | MRS Definition, Formula & Example

MRS in Economics: What It Is and the Formula for Calculating It

Explain the term "marginal rate of technical substitution." Wha... | Filo

MRTS In Economics-Marginal Rate of Technical Substitution| MPL, MRS

Assume a firm has the production function q(K,L) = 0.25KL, where K represents units of capital and L represents units of labor. Assume the rental rate of capital is 16 and the wage rate is4. The firm's marginal product of capital, MPK, and marginal product of labor, MPL, are given as follows:MPK = OKMPL = TLa) Solve for the short-run cost function for this firm if capital is fixed at 4 units in the short-run. (8 pts)b) Fill in the following table: (8 pts)Q 1 2 3 4LVC C MC AFC AVC 80 16 64 32 80