Question: In Example 6.4, wheat is produced according to the production function q = 100(K0.8L0.2). a) Beginning with a capital input of 4 and a labor

In Example 6.4, wheat is produced according to the production function q = 100(K0.8L0.2).
a) Beginning with a capital input of 4 and a labor input of 49, show that the marginal product of labor and the marginal product of capital are both decreasing.
b) Does this production function exhibit increasing, decreasing, or constant returns to scale?

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a For fixed labor and variable capital K 4 q 100 4 08 4902 66022 K 5 q 100 5 08 49 02 78925 MP K 129... View full answer

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