(Figure: Capital and Labor XVI) Consider the Production Function Q

question 121

Multiple Choice

(Figure: Capital and Labor XVI) Consider the production function Q = L^0.5K^0.5, with MP_K = L^0.5/K^0.5 and MP_L = K^0.5/L^0.5. When K = 5 and L = 10, the marginal rate of technical substitution is ____.

• A) 2
• B) 1
• C) 0.5
• D) 0.25

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