1. A firm's production is given by Q = 3L/2K1/2. a. Sketch the isoquant curve when...

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1. A firm's production is given by Q = 3L/2K1/2. a. Sketch the isoquant curve when Q = 150 (Put L on the X axis and try L = 5, 10, 15, 20). b. Find the MPL and MPK of the production function. c. Does this production function satisfy the law of diminishing returns? Explain. d. Find the marginal rate of technical substitution. e. Does this production function have increasing, decreasing, or constant returns to scale? Show your work. 1. A firm's production is given by Q = 3L/2K1/2. a. Sketch the isoquant curve when Q = 150 (Put L on the X axis and try L = 5, 10, 15, 20). b. Find the MPL and MPK of the production function. c. Does this production function satisfy the law of diminishing returns? Explain. d. Find the marginal rate of technical substitution. e. Does this production function have increasing, decreasing, or constant returns to scale? Show your work.

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Production Function Analysis a Isoquant Curve Q 150 An isoquant curve represents all possible combinations of labor L and capital K that produce a constant level of output Q Heres how to sketch the is... View the full answer