Question: Consider the production function Y = K1/2N1/2 (a)Compute output when K = 25 and N = 49 (b)If both capital and labor double, what happens

Consider the production function Y = K1/2N1/2

(a)Compute output when K = 25 and N = 49

(b)If both capital and labor double, what happens to output (Y)?Does this production function have constant returns to scale?

(c)Convert the production function into a per-worker production function.(Hint: Divide both sides by N.You should have Y/N on the left hand side and K/N on the right hand side).

(d) Suppose that K/N = 8.What is the level of Y/N?

(e)Plot the relationship between output per worker (Y/N) and capital per worker (K/N).

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