Answered

You are currently using three printing presses and five employees to print 100 sales manuals per hour. If the MRTS at this point is 0.5 (capital is on the vertical axis of the isoquant map), then you would be willing to exchange ________ employees for one more printing press in order to maintain current output.

Answer :

Answer:

2 Labor

Explanation:

Given:

Number of capital (Printing machine) input = 3

Number of Labor input = 5

MRTS = 0.5

Additional Capital (Printing machine) = 1

Change in Labor = ?

Computation of change in Labor input:

MRTS = Change in Capital input / Change in Labor input

0.5 = 1 (Additional machine) / Change In Labor input

Change in Labor Input = 1 / 0.5

Change in Labor Input = 2 labor

Other Questions