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Suppose the firm's production function is Q = 2KL where Q is units of output, K is units of capital (which are fixed at 2),

Suppose the firm's production function is Q = 2KL

where Q is units of output, K is units of capital (which are fixed at 2), and L is units of labor.

a. What is the firm’s short-run production function?

b. Over the labor input usage range of 0 to 5, that is L ranging from 0 to 5, graph the firm’s Total Product curve.

c. Derive and graph the firm’s Average Product curve and the Marginal Product curve. Graph/plot them on the same graph.

d. What is different about these AP and MP curves? Does the firm experience any diminishing marginal returns? Why or why not. Explain.

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