Suppose a firm has a production function given by Y zK0 3 N0 7 (a) If z 1 and K 1, graph the production function Is the marginal product of labor positive and diminishing (b) Now, graph the production function when z 1 and K 1 Explain how the production function changed from part (a) (c) Next, graph the production function when z 1 and K 2 What happens now (d) Given this production function, the marginal product of labor is given by MPN 0 7K0 3 N0 3 Graph the marginal product of labor for (z, K) (1, 1), (2, 1), (1, 2), and explain what you get

Question: Suppose a firm has a production function given by Y = zK0.3 N0.7. (a) If z = 1 and K = 1, graph the production

Suppose a firm has a production function given by Y = zK0.3 N0.7.

(a) If z = 1 and K = 1, graph the production function. Is the marginal product of labor positive and diminishing?

(b) Now, graph the production function when z = 1 and K = 1. Explain how the production function changed from part (a).

(d) Given this production function, the marginal product of labor is given by MPN = 0.7K0.3 N–0 .3. Graph the marginal product of labor for (z, K) = (1, 1), (2, 1), (1, 2), and explain what you get.

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