Question:

Microecon: MP1, MP2, MRTS?

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For the following technology function find the marginal product of factor 1, marginal product of factor 2 and the technical rate of substitution:

f(x1, x2) = 2(x1) +3(x2)

f(x1, x2) = min {2(x1), 3(x2)

f(x1, x2) = A(x1)(x2)

how do i do this?

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  1. so you have three functions here. to find the MP of factor 1, you take the derivative of the function with respect to factor 1. for the first function that will be:

    df/dx1=2

    MP of factor 2:

    df/dx2=3

    TRS=-MP1/MP2=-(df/dx1)/(df/dx2)=-dx2/d...

    Do for the next two functions.

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