Given a Cobb-Douglas production function where α= β = 0.5: Q= (K^0.5) x (L^0.5)

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})=

K=

MRTS=

where

K=

K=

K=

K=200^{2}

K=40000

MRTS=-400

Wage employment is Someone who works as a salaried employee earning a set amount of money each week. They may be paid weekly, bi-weekly or monthly. Self employment is someone who is Self-employed is an individual whoworks for himself instead of working for an employer that pays a salary or a wage.