Answer to Question #125592 in Microeconomics for Fawad Hassan

Question

Graph a typical isoquant curve for the following production functions and determine whether they have convex indifference curves. Also calculate MRTS for each of the following functions
Q(x,y)=3x+y
Q(x,y)=√(x.y)
Q(x,y)=√x+ y

Answer 1

a)

$Q(x,y)=3x+y$

$\frac {\delta Q}{\delta x}=3$

$\frac {\delta Q}{\delta y}=1$

$MRTS=\frac {3}{1}=3$

b)

$Q(x,y)=\sqrt {xy}$

$\frac {\delta Q}{\delta x}=\frac {y}{2 \sqrt {xy}}$

$\frac {\delta Q}{\delta y}=\frac {x}{2 \sqrt {xy}}$

$MRTS=\frac {y}{x}$

c)

$Q(x,y)=\sqrt {x+y}$

$\frac {\delta Q}{\delta x}=\frac {1}{2 \sqrt{x+y}}$

$\frac {\delta Q}{\delta y}=\frac {1}{2 \sqrt{x+y}}$

$MRTS=1$