9.2 Suppose the production function for widgets is given by q=kl-0.8k -0.2/, where a represents the annual quantity of widgets produced, k represents annual capital input, and/ represents annual labor input.

a. Suppose k = 10; graph the total and average productivity of labor curves. At what level of labor input does this average productivity reach a maximum? How many widgets are produced at that point?

b. Again assuming that k = 10, graph the MP, curve. At what level of labor input does MP, = 0?

c. Suppose capital inputs were increased to k = 20. How would your answers to parts

(a) and

(b) change?

d. Does the widget production function exhibit constant, increasing, or decreasing returns to scale?