Unformatted text preview: L* = 5; K* = 20 b) Sketch the graph of the isoquant for Q = 10. The isoquant should contain points where K*L = 100. Some examples are given in the table below. Capital Labor 1 100 4 25 10 10 20 5 50 2 100 1 2. (4 points) Suppose a firm’s production function is Q = L 1/2 K 1/4 . Does this production function exhibit increasing, constant, or decreasing returns to scale? Decreasing Returns to Scale...
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This note was uploaded on 12/18/2008 for the course ECON 302 taught by Professor Kurrejamesantho during the Fall '08 term at Penn State.
 Fall '08
 KURREJAMESANTHO

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