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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 CobbDouglas production function. b a L K q = where a+b=1 (a) Compute the marginal productivity of labor and capital for this CobbDouglas 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.
 Spring '08
 Ghosh
 Economics

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