Question: Suppose the production function for widgets is given by: Q = f (K,L) = KL 0.6K 2 0.2L 2 1. Suppose L=25 (is fixed), derive

Suppose the production function for widgets is given by: Q = f (K,L) = KL 0.6K² 0.2L²

1. Suppose L=25 (is fixed), derive an expression for and graph the total product of capital curve (the production function for a fixed level of labor) and the average productivity of capital curve.

2. At what level of capital input does the average productivity reach a maximum? How many widgets are produced at this point?

3. Again, assuming L=25, derive an expression for and graph the MPK curve. At what level of capital input does MPK =0?

4. Does this production function exhibit constant, increasing or decreasing returns to scale?

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