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Q1. Suppose the production function for widgets is given by: q=kl0.8k20.2l2 where q represents the annual quantity of widgets produced, k represents annual capital input,
Q1. Suppose the production function for widgets is given by: q=kl0.8k20.2l2 where q represents the annual quantity of widgets produced, k represents annual capital input, and I represents annual labor input. a. Suppose k=10, at what level of labor input does this average productivity of labor reach a maximum? How many widgets are produced at that point? b. Again assuming that k=10. At what level of labor input does MPl=0 ? c. Suppose capital inputs were increased to k=20. How would your answers to parts (a) and (b) change? d. Does the widget production function exhibit constant, increasing, or decreasing returns to scale
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