Business, 18.06.2020 17:57, haileybland8050
Consider the production function Q = f(L, K) = 10KL / K+L. The marginal products of labor and capital for this function are given by?
MPL = 10K^2 / (K +L)^2, MPK = 10L^2 / (K +L)^2.
(a) In the short run, assume that capital is fixed at K = 4. What is the production function for the firm (quantity as a function of labor only)? What are the average and marginal products of labor? Draw APL and MPL on one graph.
(b) What is the marginal rate of technical substitution for this technology?
(c) Are the returns to scale of this production function increasing, decreasing or constant? Explain.
Answers: 2
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Consider the production function Q = f(L, K) = 10KL / K+L. The marginal products of labor and capita...
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