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11. Explain the concept of ridge lines. Explain why MPK and MPL are equal to zero...

11. Explain the concept of ridge lines. Explain why MPK and MPL are equal to zero on the left side of the ridge and right side of the ridge line respectively.

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At point A on Q1, the firm employs some units of labour and capital . Since the tangent to Q1 at point A is parallel to the vertical axis or y-axis , marginal product of capital (MPK) is zero . If more capital is used , marginal product of capital should be negative due to diminishing marginal product . In other words, beyond point A , MPK is negative . At point B on Q1, MPL is zero and beyond point B on Q1, MPL is negative . So MPK and MPL are equal to zero on the left and right sides of ridge line respectively .

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