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Task2 - We have Q’ = 3> 1 Production function doesn’t...

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Exercise 1: Graph the short-run total product curves for each of the following production functions if K is fixed at K 0 =4 a. Q = F(K,L) = 2K * 3L . b. Q = F(K,L) = K 2 * L 2 . Do the 2 production functions obey the law if diminishing returns? Solution: a. If K =4 Q = 3L * 8 Graph the short-run total product curves:
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Unformatted text preview: We have: Q’ = 3 > 1 Production function doesn’t obey the law of diminishing returns b. If K = 4 Q = 16L 2 Graph the short-run total product curves: We have: Q’ = 32L. L is always integer so Production function doesn’t obey the law of diminishing returns...
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Task2 - We have Q’ = 3> 1 Production function doesn’t...

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