A firm has the monthly production function

where L is worker hours per month and K is square feet of manufacturing space.
a. Does the firm's technology satisfy the Productive Inputs Principle?
b. What is the firm's MRTSLKat input combination (L, K )? Does the firm's technology have a declining MRTS?
c. Does the firm have increasing, decreasing, or constant returns to scale?

Transcribed Image Text:

F(L, K)=L+1+ K,