Answer:
MRTS=-400
Explanation:
This equation basically says that the output that this firm produces is a function of Labor and Capital, where each isoquant represents a fixed output produced with different combinations of inputs
The equation for the isoquant when Q = 2,000 can be found as follows
Q=(K^{0.5})*(L^{0.5})
where Q = 2000
2000=(K^{0.5})*(L^{0.5})
(K^{0.5})=[tex]\frac{2000}{(L^{0.5})}[/tex]
K=[tex]\left (\frac{2000}{(L^{0.5})} \right )^{2}[/tex]
MRTS=[tex]-\left ( \frac{\frac{0.5*2000}{100}}{\frac{0.5*2000}{40000}} \right )[/tex]
where
K=[tex]\left (\frac{2000}{(L^{0.5})} \right )^{2}[/tex]
K=[tex]\left (\frac{2000}{(100^{0.5})} \right )^{2}[/tex]
K=[tex]\left (\frac{2000}{(10)} \right )^{2}[/tex]
K=200^{2}
K=40000
MRTS=-400
