h5 - employed. (a) Graph the q=2,000 pounds per hour...

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1 The Colorado College Department of Economics and Business Block 7 Econ 207 HW 5. 1. Frisbees are produced according to the following production function. q = 2 K + L where q= output of Frisbees per hour, K=Capital input per hour, L= Labor input per hour. (a) If K =10, how much L is needed to produce 100 Frisbees per hour? (1 point) (b) If K =25, how much L is needed to produce 100 Frisbees per hour? (1 point) (c) Compute the marginal product of Capital and marginal product of Labor. (4 points) (d)What is the RTS along this isoquant? Graph this isoquant. Comment on this shape. (4 points) 2. Suppose that the hourly output of chili at a barbeque (q, measured in pounds) is characterized by L K q . 20 = where K is the number of large pots used each hour and L is the number of worker hours
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Unformatted text preview: employed. (a) Graph the q=2,000 pounds per hour isoquant. (2 points) (b) The point K=100, L=100 is one point on the q=2,000 isoquant. What value of K corresponds to L=101 on that same isoquant? (2 points) (c) Calculate the RTS for this production function. What is the value of RTS at K=25, L= 400? (2+2+2 = 6 points) 3. Consider the following Cobb-Douglas production function. b a L K q = where a+b=1 (a) Compute the marginal productivity of labor and capital for this Cobb-Douglas production function. (b) Show that the marginal productivities of labor and capital are diminishing. (c) Derive the RTS for this production function. (4+3+3 = 10 points)...
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This homework help was uploaded on 04/19/2008 for the course EC 207 taught by Professor Ghosh during the Spring '08 term at Colorado College.

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