Question: UESTION 3 (20 MARKS) You are given the production function: Q (K, L) = 10KOLB a) What is the average product of labour, holding capital

UESTION 3 (20 MARKS) You are given the production function: Q (K, L) = 10KOLB a) What is the average product of labour, holding capital fixed at K? Simplify fully [3 marks] b) What is the marginal rate of technical substitution (MRTS)? Simplify fully [11 marks] c) Does the above function exhibit increasing, decreasing or constant returns to scale? Illustrate why an explain what this means [6 marks] TOTAL MARKS FOR ASSIGNMENT 02: 50 MARKS [END OF TUTORIAL LETTER]

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