11.5 Suppose that q = L aK? 0 < a < l , 0 < P < l , a + P = l .

a. Show that eqL =

a, eqK = /3.

b. Show that MP,, > 0, MPK > 0; d 2

q/dL 2 < 0, d 2

q/dK 2 < 0.

c. Show that the RTS depends only on K/L, but not on the scale of production, and that the RTS (Lfor K) diminishes as L/Kincreases.