Question: Microeconomic theory 1. (20 points) Production Consider a production process described by the following production function: (PM (a) (5 points) Draw a typical isoquant for

Microeconomic theory

1. (20 points) Production Consider a production process described by the following production function: (PM (a) (5 points) Draw a typical isoquant for this production function. Use capital in the vertical axis and labor in the horizontal axis. (b) (10 points) Indicate if the production function exhibits: increasing, decreasing or constant returns to scale. For fullcredit show your work, just stating the answer will not be sufficient. (c) (5 points) Find the marginal product of labor and determine if there are increasing, diminishing or constant returns to labor

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