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For the following production function, please do the following: Y = aK + bL; a,b > 0 Part A [5 points]. Find whether they have
For the following production function, please do the following:
Y = aK + bL; a,b > 0
Part A [5 points]. Find whether they have increasing, constant, or decreasing Returns To Scale;
Part B [5 points]. Draw the isoquant map for two or more levels of output;
Part C [5 points]. Derive the marginal rate of substitution of K for L;
Part D [5 points]. Comment on the realism of the functional form for a trucking industry.
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