Suppose that a firm's technology can be described by the production function q = KL ....

 

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Suppose that a firm's technology can be described by the production function q = KL . 1. What would be the marginal product of labor? 2. What would be the marginal product of capital? 3. What would be the average product of labor? 4. Does the function exhibit constant, increasing or diminishing returns to labor? 5. What would be the marginal rate of technical substitution? 6. Does the function exhibit constant, increasing or decreasing returns to scale? Suppose that a firm's technology can be described by the production function q = KL . 1. What would be the marginal product of labor? 2. What would be the marginal product of capital? 3. What would be the average product of labor? 4. Does the function exhibit constant, increasing or diminishing returns to labor? 5. What would be the marginal rate of technical substitution? 6. Does the function exhibit constant, increasing or decreasing returns to scale?

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Answer 1 Marginal Product of Labor MPL The marginal product of labor MPL represents the change in output q with respect to a oneunit change in labor L ... View the full answer