Consider production function
f(l, k) = l² + k²
(a) Evaluate the returns to scale.
(b) Calculate the marginal product of labor and the marginal product of capital.
(c) Calculate the MRTS.
(d) Does the production function exhibit diminishing MRTS?
(e) Plot the isoquant for production level q = 1.
Hint: Notice that the input mixes (1; 0) and (0; 1) are on this isoquant.

Answer rating: 100% (QA)

Analyzing the Production Function fl k l k a Returns to Scale This production function exhibits increasing returns to scale Heres why If we proportion... View the full answer