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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- Spring '08
- Economics, 2k, 2,000 pounds, 20 K, Colorado College Department of Economics