The marginal product of labor in the production of computer chips is 3030 chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is 0.200.20. What is the marginal product of capital?

150

Explanation:

As we know that

The marginal rate of technical substitution (MRTS) = Marginal product of labor ÷ Marginal product of capital

where,

The marginal rate of technical substitution (MRTS) = 0.20

And, the marginal product of labor is 30 chips per hour

So, the marginal product of capital is

= 30 chips per hour ÷ 0.20

= 150

The marginal rate of technical substitution (MRTS) shows a relationship between the marginal product of labor and the marginal product of capital

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.