Consider a production function of the following form: X = l00 L'\ where X = output and L = input of labor (assuming other inputs are fixed).
a. Construct a figure like Figure 6-1 and a table like Table 6-1 for inputs of L = 0, 1, 2, 3, and 4.
b. Explain whether this production function shows diminishing returns to labor. What values would the exponent need to take for this production function to exhibit increasing returns to labor?