Will’s grade (G) for an upcoming exam depends on the number of hours he studies marginal analysis problems (A), and the number of hours he studies supply and demand problems (R). Specifically, his grade production function is G = 7A0.5R0.5.
A) If Will spent 16 hours studying for supply and demand problems and got a grade of 84, how many hours did he spend studying marginal analysis problems?
B) What is Will’s marginal rate of technical substitution between studying the two types of problems? (Hint: The MRTS should have MPA as the numerator and MPR as the denominator.)