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Write down production functions with inputs L, labor, and K, capital, representing production processes de- scribed by the following scenarios. (a) Isoquants in (L, K)
Write down production functions with inputs L, labor, and K, capital, representing production processes de- scribed by the following scenarios. (a) Isoquants in (L, K) space are L-shaped, and returns to scale are increasing (b) The production function is Cobb-Douglas; an input bundle of (L, K) = (1, 1) produces 10 units; returns to scale are constant; and with input prices of w = 10 and r = 5, the optimal input ratio is L = 2K
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