Unformatted text preview: Brazil can produce one liter of watermelon juice. a) What is the production function for watermelon juice? b) Plotting watermelons from Brazil on the xaxis, draw the isoquant for 10 liters of watermelon juice. Draw the isoquant for 18 liters of watermelon juice. 3) For each of the following, show whether the production function satisfies (1) Diminishing Marginal Product in labor, (2) Diminishing Marginal Rate of Technical Substitution (MRTS), and (3) Constant Returns to Scale. a) q = 3 K + 5 L b) q = min(3 K , 4 L ) c) q=L 0.5 K 0.5 d) q=L 2 K 2 4) Ch. 6 #3 from textbook. 5) Ch. 6 #21 from textbook. Assume marginal analysis problems (A) are the xaxis input....
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 Winter '07
 RAUCH
 Economics, Microeconomics, Economics of production, Marginalism, Marginal concepts

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