Question: You are given the production function: Q (K,L) = 4K 0.6 L 0.4 a)What is the average product of labour, holding capital fixed at K?

You are given the production function: Q (K,L) = 4K0.6L0.4

a)What is the average product of labour, holding capital fixed at K? Simplify fully [6 marks]

b)What is the marginal rate of technical substitution (MRTS)? Simplify fully [13 marks]

c)Does the above function exhibit increasing, decreasing or constant returns to scale? Illustrate why and explain what this means [6 marks]

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