Find the Marginal Rate of Technical Substitution for the Following

question 56

Short Answer

Find the Marginal Rate of Technical Substitution for the following production functions:
a.q = L⁰.⁵K⁰.⁵
b.q = L⁰.⁵ + K⁰.⁵
c.q = min{K,L}
d.q = L + K

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Definitions:

Withdrawal

The act of removing funds from a bank account, or taking capital out of a business by an owner for personal use.

Capital Interest

Interest attributable to the ownership or investment in a business entity or property, often reflecting the cost of financing the entity's assets.

Partnership Assets

Resources owned by a partnership that are used in the operation of the business and are subject to division among partners according to the partnership agreement.

Income Sharing

A financial arrangement where earnings are distributed among individuals or groups based on a predetermined formula or agreement.