11.7 Consider a production function of the form q
0  1K L   2K  3L, where 0 i 1 i
0...3

a. If this function is to exhibit constant returns to scale, what restrictions should be placed on the parameters 0 ... 3?

b. Show that in the constant returns-to-scale case this function exhibits diminishing marginal productivities and that the marginal productivity functions are homogeneous of degree zero.

c. Calculate in this case. Is constant?