Solution to
exercise
The
y
-isoquant is given by
y
=
z
1
1/2
+
z
2
1/2
,
or
z
2
= (
y
z
1
1/2
)
2
so that
MRTS(
z
1
,
z
2
) = (
y
z
1
1/2
)
z
1
1/2
= (
z
2
/
z
1
)
1/2
.
(Remember that the MRTS is the
absolute value
of the slope of an isoquant.)
z11/2)2