1. Consider the following production functions: ? Y = 10K1/2L1/2 ? Y = 2K + 3L a

Question

1. Consider the following production functions: ? Y = 10K1/2L1/2 ? Y = 2K + 3L a. Fixing labor employment (L) at 16 units, what is the marginal product of capital when capital employment is 25, 35, and 45 for each production function? Do these production functions exhibit diminishing returns to capital employment? Explain. b. Are labor and capital complements under these production functions? Explain. c. Do these production functions have the property of constant returns to scale? Explain. d. Is either production function a

Explanation / Answer

marginal product= Dy/dk1 at 25,35,45

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