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The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution ​(MRTS​) of hours of labor for hours of machine capital is . What is the
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The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution ​(MRTS​) of hours of labor for hours of machine capital is . What is the marginal product of​ capital? The marginal product of capital is nothing chips per hour. ​(Enter your response as an integer.​)

User Hudi Ilfeld
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1 Answer

18 votes
18 votes

Answer: 500 chips per hour

Step-by-step explanation:

Marginal rate of technical substitution is calculated by the formula:

= Marginal product of labor / Marginal product of capital

0.20 = 100 / marginal product of capital

Marginal product of capital * 0.20 = 100

Marginal product of capital = 100 / 0.20

= 500

User Wenxi Zeng
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