*6. Contrast the production functions given below: a. Suppose that the production function faced by a 30-weight...

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*6. Contrast the production functions given below:

a. Suppose that the production function faced by a 30-weight ball bearing producer is given by Q = 4 K 0.5 L 0.5 , where M P K = 2 K – 0.5 L 0.5 and M P L = 2 K 0.5 L – 0.5 . Do both labor and capital display diminishing marginal products?

Does the production function display a diminishing marginal rate of technical substitution?

b. Suppose that the production function faced by a 40-weight ball bearing producer is given by Q = 4KL, where M P K = 4L and M P L =

4K. Do both labor and capital display diminishing marginal products? Does the isoquant you drew in

(a) display a diminishing marginal rate of technical substitution?

c. Compare your results. Must labor and capital display diminishing marginal products in order for the MRTS to diminish?

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