Consider a Production Function of the Form with Marginal

question 44

Multiple Choice

Consider a production function of the form with marginal products MP_K = 2KL² and MP_L = 2K²L.What is the marginal rate of technical substitution of labor for capital at the point where K = 5 and L = 5?

• A) 5
• B) 25
• C) 50
• D) 1

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Permanent Accounts

Accounts that are not closed at the end of the accounting period, hence carry their balances over into the next period; these include asset, liability, and equity accounts.

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and dividend accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances before preparing financial statements.