The marginal product of labour in the production of computer chips is 100 chips per hour. The marginal rate of technical substitution of hours of labour for hours of machine capital is 0.5. What is the marginal product of capital?
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Production and returns to scale has come up 92 times in 6 exams since 2007.
This question is on Isoquants and the marginal rate of technical substitution, part of Production and returns to scale in Microeconomics.
Combinations of inputs that give the same output, and the rate at which one input replaces another.
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Question from the UoH 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.