Question: 1. Consider the production function Q=f(L, K) = K + L 1 0 K L The marginal products of labor and capital for this function

1. Consider the production function Q=f(L, K) =K+L10KL The marginal products of labor and capital for this function are given by

M PL=(K+L)210k2, MPk=(k+l)210L2

a) What is the marginal rate of technical substitution MRTSlk for this technology?

b) Are the returns to scale off increasing, decreasing or constant?

c) In the short run, assume that capital is fixed at K= 4. What is the production function for the firm (quantity as a function of labor only)?

d) For the short-run production of part (c), what are the average and marginal products of labor? Draw APl and MPl on one graph.

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