marginal rate

What Increases Marginal Product Of Capital?

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What Increases Marginal Product Of Capital? Marginal product of capital (MPK) is the incremental increase in total production that results from one unit increase in capital while keeping all other inputs constant. … α represents the proportion of capital and 1- α represents the proportion of labor required for production to occur. What increases marginal

What Is Diminishing Marginal Rate Of Technical Substitution?

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What Is Diminishing Marginal Rate Of Technical Substitution? A decline in MRTS along an isoquant for producing the same level of output is called the diminishing marginal rate of substitution. … If the firm hires another unit of labor and moves from point (b) to (c), the firm can reduce its use of capital (K)