L,K holds and thus Lagran

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Suppose that firm uses 3 units of labor (L) with 4 units of capital (K) in fixed
proportion. Which of the following is correct?
The law of diminishing MRTSLK holds and thus Lagrange multiplier method is applicable
MRTSLK is not well defined and thus Lagrange multiplier method is applicable
O The law of diminishing MRTS1
holds and capital and labor are perfect complements.
L,K
MRTSLK is not well defined and thus Lagrange multiplier method is not applicable
Transcribed Image Text:Suppose that firm uses 3 units of labor (L) with 4 units of capital (K) in fixed proportion. Which of the following is correct? The law of diminishing MRTSLK holds and thus Lagrange multiplier method is applicable MRTSLK is not well defined and thus Lagrange multiplier method is applicable O The law of diminishing MRTS1 holds and capital and labor are perfect complements. L,K MRTSLK is not well defined and thus Lagrange multiplier method is not applicable
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