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Theproductionof barstools (q) is characterized by aproduction functionof the form a. Derive general expressions for average productivity of labor and capital for barstool production as
Theproductionof barstools (q) is characterized by aproduction functionof the form
a. Derive general expressions for average productivity of labor and capital for barstool production as functions of K and L. (Hint: By definition, = q/L and = q/K)
b. Graph and curve for K=100
c. Graph the q= 10 isoquant. Show all K-L combinations in a table.
d. The point K=10, L=10 is one point on the q =10 isoquant. What value of K corresponds to L= 11 on that isoquant? What is the approximate value for the RTS at K = 10, L=10?
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