Production Technology: Two Variable Inputs
Production Surface (or Total Product Hill):
Isoquants:
A curve that demonstrates all of the combinations of labour and capital that can produce a given level of output.
MRTS (Marginal rate of Technical Substitution)
MRTSL,K = −ΔK/ΔL
From Q = f (L,K) , we can get the following equation by totally differentiating the production function.
ΔQ = MPL . ΔL + MPK . ΔK = 0.
Finally, we can get:
MRTSL,K = −ΔK/ΔL= MPL/MPK and d2K/dL2 > 0 implies the Law of Diminishing MRTS.
Elasticity of Substitution:
σ = (percentage change in capital - labour ratio)/(percentage change in MRTSL,K)= [(Δ(K/L)/(K/L))]/[ΔMRTS/MRTS]K/L at A = slope of ray OA = 4
MRTS at A = 4K/L at B = slope of ray OB = 1
MRTS at B = 1As the firm moves from A to B, the elasticity of substitution equals 1.
Example: Q = LK = 100 (left diagram)
Latest technology based Microeconomics Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Microeconomics help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Microeconomics, project ideas and tutorials. We provide email based Microeconomics help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Microeconomics. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Microeconomics Homework help and assignment help services. They use their experience, as they have solved thousands of the Microeconomics assignments, which may help you to solve your complex issues of Microeconomics. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
www.tutorsglobe.com offers preparation of ethers homework help, assignment help, online tutoring assistance, organic chemistry solutions by online qualified tutor's help.
tutorsglobe.com morphology assignment help-homework help by online mycoplasma tutors
Introduction to Nucleic Acids tutorial all along with the key concepts of Types of Nucleic Acids, Ribonucleic Acid, Deoxyribonucleic Acid, Nucleic Acid Structure and Chemical Structure of nucleic acid
Theory and lecture notes of Pigs in a Box all along with the key concepts of pigs in a box, homework help, assignment help, market structure, dominant strategy equilibrium. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Pigs in a Box.
tutorsglobe.com simple theory of income determination assignment help-homework help by online theory of economics tutors
Proteins and their Structures tutorial all along with the key concepts of Definition and Diversity of Proteins, Protein Structure and Levels of Protein Structure
Are you in quest for the best guidance for your assignments? New Media Assignment Help is the best option for getting notable grades!!
Theory and lecture notes of Measures of Variation all along with the key concepts of Measures of variation, Range, Variance, Standard Deviation, Sum of Squares, Chebyshev's Theorem and Empirical Rule. Tutorsglobe offers homework help, assignment help and tutor’s assistance on Measures of Variation.
tutorsglobe.com electric kettle assignment help-homework help by online water heaters tutors
Evolution and Genetics tutorial all along with the key concepts of Pre-Darwin theories of Evolution, Lamarcks Theory of Evolution, Darwin's Theory of Evolution, Modern views on Evolution
mechanism properties of polymers tutorial all along with the key concepts of stress-strain properties, typical materials-mechanical properties, action on polymer
tutorsglobe.com stimulation of hair cells assignment help-homework help by online ear tutors
The techniques employed through a cost accountant in the performance of his job are identical to those used through an auditor of financial accounts.
polyurethane tutorial all along with the key concepts of properties of polyurethane, advantages of polyurethane, applications of polymers, usage per application of polymer
tutorsglobe.com schottky defects assignment help-homework help by online imperfections in solids tutors
1962925
Questions Asked
3689
Tutors
1493158
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!