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Assume that the production function for the removal of atmospheric carbon is as follows: Q= MN - 0.8M 2 - 0.2N 2 , where M=

Assume that the production function for the removal of atmospheric carbon is as follows:

Q= MN - 0.8M2 - 0.2N2, where M= human-made capital and N- natural capital.

a) Re-write the production funstion given a level of human-made capital of 10 units. Find its maximum point. Then, find the average natural capital productivity (APN). Find where the APN reaches maximum.

b) Find the marginal productivity of natural capital (MPN). At what value N is MPN zero?

c) Graph the production function and label of its maximum point of output. On a separate graph, draw the MPN and the APN functions as functions of natural capital. Lavel point (Value of N) for which APN is at its maximum.

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