._. -.._ l'"""\""" ._..._-._... .. ___, ...._... ._ .- _-_. .._a_-.-_, _ 4. Suppose a rm produces its output with 2 inputs, K and L. The table below presents four different isoquants with 7 combinations of K and L that produces the same level of output for each isoquant: lsoquant ll lsoquant Ill lsoquant IV (Q=200l a. Plot these 4 different isoquants on the same set of axes (with K on the vertical axis and L on the horizontal axis) and connect points on each isoquant by smooth curves. What is the relevant portion of the isoquants and explain (Hint: for example, would the firm produce at points A, B or G, or H why or why not). Calculate the TRS for all the points on the relevant portion of the isoquants. Does this rm face diminishing TRS? b. From the isoquant mapping in (a), explain how you would derive the production function if labour i; the only variable input. Map out the production function from this set of isoquants with L on the horizontal axis and output (Q) on the vertical axis. Is there diminishing MPLI explain