Question: 1. Suppose a firm has a production function given by Y = zK0.3107. (a) Graph the production function when z = 1 and K =

1. Suppose a firm has a production function given by Y = zK0.3107. (a) Graph the production function when z = 1 and K = 1. (b) In the same graph, graph the production function when z = 1 and K = 2. Explain the change of production. (c) Given this production function, the marginal product of labor is given by MPN = 0.7zK03/-03. Graph the marginal product of labor for (z, K) = (1, 1), (2, 1), (1, 2), and explain what you get. (d) Suppose the competitive wage is w, show the profit-maximization firm hires N = 0.7z 10/3 K

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