Consider the production functionY = K N .

a. Compute output when K = 49 and N = 81.

b. If both capital and labor double, what happens to output?

c. Is this production function characterized by constantreturns to scale? Explain.

d. Write given production function as a relation between outputper worker and capital per worker.

e. Let K/N = 4. What is Y/N? Now double K/N to 8. DoesY/N double as a result?

f. Does the relation between output per worker and capitalper worker exhibit constant returns to scale?

g. Is your answer to (f) the same as your answer to (c)? Whyor why not?

h. Plot the relation between output per worker and capital perworker. Does it have the same general shape as the relationin Figure 10-4? Explain.

Figure 10-5 The Effects of an Improvement in the State of Technology An improvement in technology shifts the production function up, leading to an increase in output per worker for a given level of capital per worker. MyEcanab Animation \".3. Output per worker, YIN 3:. K/N, 1)' A Capital per worker, K/N