Consider q is output level, K is capital input and L is labour input. In the...

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Consider q is output level, K is capital input and L is labour input. In the short run, capital input is fixed at Ko. Labour input varies from 0 to 5. Production function is given by q = K L³. (a) Suppose a = ß = 0.5. Calculate the short-run outputs when labour input is 0, 1, 2, 3, 4, and 5 respectively. Calculate the total product and then use the total product values to calculate the marginal product and average product. Indicate whether or not marginal product is diminishing. (b) Suppose a = B = 0.5. Does this production function exhibit constant, В increasing or decreasing returns to scale? Using the definition of returns to scale to explain. (c) Suppose a В = 1. Does this production function exhibit constant, increasing or decreasing returns to scale? Using the definition of returns to scale to explain. (d) Initially, L = K = 1. If the production function exhibits constant returns to scale, and a = 0.2, what is the value of ß? = Consider q is output level, K is capital input and L is labour input. In the short run, capital input is fixed at Ko. Labour input varies from 0 to 5. Production function is given by q = K L³. (a) Suppose a = ß = 0.5. Calculate the short-run outputs when labour input is 0, 1, 2, 3, 4, and 5 respectively. Calculate the total product and then use the total product values to calculate the marginal product and average product. Indicate whether or not marginal product is diminishing. (b) Suppose a = B = 0.5. Does this production function exhibit constant, В increasing or decreasing returns to scale? Using the definition of returns to scale to explain. (c) Suppose a В = 1. Does this production function exhibit constant, increasing or decreasing returns to scale? Using the definition of returns to scale to explain. (d) Initially, L = K = 1. If the production function exhibits constant returns to scale, and a = 0.2, what is the value of ß? =