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A firm has a production function as follows: F(L,K)=(KL)^1/2 ** Part a. (5 marks) Is the production function exhibiting constant/increasing/decreasing returns to scale? ** Part
A firm has a production function as follows:
F(L,K)=(KL)^1/2
** Part a. (5 marks)
Is the production function exhibiting constant/increasing/decreasing returns to scale?
** Part b. (5 marks)
Does the production function have positive marginal products of labor and capital for any K,L>0?
** Part c. (5 marks)
Show that the production function has diminishing marginal product of labor.
** Part d. (5 marks)
Show that the production function has diminishing marginal product of capital.
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