Question: Suppose a firm has a production function given by Y= zK^(0.3) N^(0.7) 1- If z = 1 and K = 1 , graph the production

Suppose a firm has a production function given by Y= zK^(0.3) N^(0.7) 1- If z = 1 and K = 1 , graph the production function. Is the marginal product of labor positive and diminishing?

2 - Now, graph the production function when z = 2 and K = 1. Explain how the production function changed from part (a).

3 - Next, graph the production function when z = 1 and K = 2. What happened now?

4 - Given this production function, plot on the same graph the marginal product of labor for (z, K)=(1, 1), (2, 1), (1, 2) and explain what you get

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