Me Past Yr
Me Past Yr
Me Past Yr
question 2
pg56
b) Q = 10.5L+1.5L²-0.0625L³
b) MPk = dQ/dk
= 30K^-0.4 L^0.5
= 45.25
MPL = Dq/DL
= 25K^0.6 L^-0.5
= 30.17
c) Efficientcy
MPL/w = MPK/r
30.17/50 = 45.25/75
0.60 = 0.60
The operation is operating efficiently
d) EXPANSION PATH
MPL/w = MPK/r
25K^0.6 L^-0.5 = 30K^-0.4 L^0.5
50 75
0.5k = 0.4 L
K = 0.8L