Can someone explain to me how this is decreasing MRTS?

[Nerses]

Attached

[J]

As you know, MRTS is the MPl/MPk

MPl = dQ/dL = 800LK^2 - 3L^2K^3

MLk = dQ/dk = 800L^2K - 3L^3K^2

Some simplifying would bring this down to MRTS = K/L.

To figure out if this is decreasing MRTS, we apply the same method as checking for dMRS:

• What happens when L increases?
• Because L is in the denominator, increasing L would make the MRTS decrease.
• What happens when K decreases?
• K being in the numerator, decreasing K would make the MRTS decrease
• This is the same thing as moving down and to the right on a graph that has L on the x-axis and K on the y-axis.
• A decrease and a decrease add up to... a decrease, so MRTS is diminishing