Question: 1. Suppose a rm has a production function given by Y = 2K l3'51'3'15. (a) Graph the production function when 2 = 1 and K

1. Suppose a rm has a production function given by Y = 2K l3'51'3'15. (a) Graph the production function when 2 = 1 and K = 1. In the same graph, graph the production function when 2 = 1 and K = 2. Explain the change of production. (h) Given MPN = 0.72K0'3N_'3, graph the marginal product oflahor for (2, K) = (1,1),(2,1),(1,2)1 and explain what you get. (c) Suppose the competitive wage is in, show the prot-maximization rm hires N = 2 (E) K. a

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