Question: Consider the production function: Y = K + 2N a. Compute output when K = 10 and N = 20. b. If both capital and

Consider the production function: Y = K + 2N

a. Compute output when K = 10 and N = 20.

b. If both capital and labor triple, what happens to output?

c. How would you qualify the returns to scale for this production function?

d. Write this production function as a relation between output per worker and capital per worker.

e. Let K>N=2. What is Y>N? Now double K>N=4. Does Y>N double as a result?

f. Does the relation between output per worker and capital per worker exhibit the same returns to scale as the production function in part (c)? g. What is the difference between the two production functions? h. Plot the relation between output per worker and capital per worker. How does the shape of the relationship between the two compare with Figure 10-4?

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