Question

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.

Homework Answers

Answer #1

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 .

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain the concept of linearization and why we use this. I get that linearization is the...
Explain the concept of linearization and why we use this. I get that linearization is the equation of the tangent line. But why is this relevant to estimating values?
USE the concept of demand-side gaps to explain why it is frequently a bad idea to...
USE the concept of demand-side gaps to explain why it is frequently a bad idea to transplant a channel design from one country directly to another without any modification.
Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must...
Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must plot directly on it in a competitive market.
b. Briefly discuss the concept of the Security Market Line (SML), and explain why all assets...
b. Briefly discuss the concept of the Security Market Line (SML), and explain why all assets must plot directly on it in a competitive market
write true or false. if it is false explain why. ___ the difference in electrical potential...
write true or false. if it is false explain why. ___ the difference in electrical potential between two points on the same electrical equipotential line is zero. ____ Electric equipotential lines start at a positive charge and end at a negative one.
Use the concept of conservation of angular momentum to explain the following observations: (you should lean...
Use the concept of conservation of angular momentum to explain the following observations: (you should lean heavily on carefully drawn diagram(s) for these explanations!) a) You are sitting on a rotating chair. Somebody hands you a spinning bicycle wheel with the axle horizontal. If you tip the wheel to one side, you and the chair start to rotate in one direction. If you tip the wheel to the other side, you and the chair rotate in the other direction. b)...
For a least-square regression question, the error vector's entries always sum up to zero. Explain why...
For a least-square regression question, the error vector's entries always sum up to zero. Explain why this is always the case for the error vector for a least-squares regression line?
(a) Explain the concept of fractional yield and why it is important in reaction engineering. [5...
(a) Explain the concept of fractional yield and why it is important in reaction engineering. [5 MARKS] (b) A reactant A undergoes a reaction in the gas phase as per equation (1): A ® B+C (1) (i) Thereactionissecondorderandthevaluesoftherateconstantparameterare k10=3x103 m3 mol-1 s-1 and Ea1= 50000 J mol-1 . If the reaction takes place at 300 °C, given that the feed is pure A at 1 atmosphere and that the molar flow rate is 1000 molA h-1, find the volume of...
21. Suppose the company E-bikes R US has isoquants that are straight lines or L-shaped. To...
21. Suppose the company E-bikes R US has isoquants that are straight lines or L-shaped. To cost minimize, E-bikes R US will A) not be able to minimize costs. B) find the lowest isocost line touching the relevant isoquant. C) find the highest isocost line touching the relevant isoquant. D) choose not to produce any output. 22. Suppose each mechanic must use only one wrench to fix the car, and wrenches are useless by themselves. In the long run, the...
The PPF model is used to illustrate / explain A the idea of economic or technological...
The PPF model is used to illustrate / explain A the idea of economic or technological growth. B the idea of efficiency vs. inefficiency. C the idea of diminishing returns. D All of these. In the PPF model, if the economy is producing efficiently, A It is not possible to produce more of one good at any cost. B All consumers have their basic needs satisfied. C Total production has been maximized D There is no way to produce more...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT