Unformatted text preview: capital curve (the production function for a fixed level of labor) and the average productivity of capital curve. b) At what level of capital input does the average productivity reach a maximum? How many widgets are produced at this point? c) Again, assuming L=10, derive an expression for and graph the MP K curve. At what level of capital input does MP K =0? d) Does this production function exhibit constant, increasing or decreasing returns to scale? For the curious student: http://demonstrations.wolfram.com/ConstantElasticityOfSubstitutionProduction/...
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This note was uploaded on 04/19/2010 for the course ECON Econ 11 taught by Professor Mcdevitt during the Fall '07 term at UCLA.
- Fall '07