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1. (6 Points) Consider the production function Q = 2(KL) 1/2 .(a) Write the equation of a sample isoquant when the firm produces 10 unit
1. (6 Points) Consider the production function Q = 2(KL)1/2.(a) Write the equation of a sample isoquant when the firm produces 10 unit of output. (1)(b) What is the marginal rate of technical substitution of labor for capital if MPL= K1/2L-1/2 and MPK = K-1/2L1/2? Given an economic interpretation for the marginal rate of technical substitution of labor for capital. (2)(c) What is the average product of labor? (1)
(d) Show that this production function exhibits constant return to scale. (2)
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