1. A firm's production function is , with , and . L is labour and K is capital.

1. Does this production function exibit constant, increasing or decreasing returns to scale?
2. What is the marginal rate of technichal substitution of L for K?
3. Plot 2 Isoquants(Q=100 , Q =50) (with at least 3 points each).

1. [2 points] A firm is required to produce 110 units of output using the following quantities of labour and capital (L= 6, K=7). For each of the production functions, say whether the firm can produce the output, or if it is using too much inputs (technically inefficient). a. Q=7L+8K 1 , b. Q = 20LZKZ c. Q=min{16L, 20K} d. Q=2(KL +L +1) 2. [3 points] What can you say about the return to scale of the following production function Q = min{al, bK], where a and b are positive constants? 3. [3 points] A firm's production function is Q = 523Ka, with MP, = 5 - L 3K3, and MP; = 5-L3K 3. Lis 2 labour and K is capital. a. Does this production function exibit constant, increasing or decreasing returns to scale? b. What is the marginal rate of technichal substitution of L for K? c. Plot 2 Isoquants (Q=100, Q =50) (with at least 3 points each). 4. [2 points] Could the isoquants corresponding to two different levels of output ever cross