the average and marginal products of labor, over the available range of the labor input {be sure to submit your excel le together with your assignment). [c] {15 points} [}n the basis of your result at {b}, plot the total productivity of labor, average productivity of labor, and marginal productivity of labor curves, using Excel! {be sure to submit your excel le together with your assignment]. lEa'veat: Unfortunately, the table at the start of the task only provides the output levels at a very limited number of capitallabor combinations: e.g. given If 2 If], we only know the output for L = , Illi'fl, ...,, but not for intermediate levels of the labor input. Consequently, the average and marginal product of labor curves can only be drawn with limited precision. {llne annoying implication of this: the theoretical property that the margins! product curve hits the average product curve at its martmam may onty hold approximately, not eractty. This does not indicate that there is anything wrong with your graph, let alone with the underlying theory.r {d} {IH points) 1|What is the law of diminishing marginal returns about and does it apply to Steinway? {e} {5 points] TWhat is the relation between maximal average productivity and marginal productivity? E. The Long-run. In the long run, Steinway is free to alter the amounts of labor and capital that it uses. To get a handle on its longrun production function. it is useful to describe the production process by isoquants curves that show the efcient combinations of labor and capital that can produce a specic level of output._ e.g. 111] or I'm units. From the isoquants it is easily seen whether a production process exhibits constant, decreasing or increasing returns to scale. The progress in Steinway's technology has been rather limited over the years. By means of extreme example, the rm still uses some equipment that was built in the Victorian era, such as a veneeredge cutter from 1871. But modern equipment is used to rene the tools they use, to improve the tolerances of action parts, and to make parts that don't need custom tting. E.g. a computeraided router cuts the nal shape of the top lid, and engineers use CADfCAlt-I software on a computer to redesign action parts. fiuch tasks required much more labor in the old days. As a consequence, Steinway has experienced a limited amount of nonneutral technical change, causing its isoquants to change over time. {a} {2?} points) 'What do Steinway's isoquants look like! given the available numerical information? Use the information in the table at the start of the assignment to sketch the isoquants for Q = Ill] and Q = 1m using Emmi. {h} {5 points) Explain what constant, decreasing, and increasing returns to scale are in detail. Give examples of industries that exhibit such returns to scales for each of them. {c} {l points) 1What kind of returns to scale does Steinway face? Show your work explicitly. {r1} {5 points} 'What is marginal rate of technical substitution? Explain it in as much detail as you can. [e] {5 points] TWhat is non-neutral technical progress? {f} {5 points] TWhat is the effect of nonneutral technical progress on the isoquants of Steinway