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Problemset-4 - (c Derive the marginal products for capital...

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Department of Agricultural and Resource Economics University of California, Davis ARE 100A Problem Set IV Winter 2010 Richard Howitt Production Functions Quiz on February 12th Assume that the production function for Bar-stools is a function of only two inputs, capital (K )and labor (L) and has the following form. 1/2 1/2 QKL K L == (a) Derive the average product of labor AP L and capital AP K curves for Bar-stool production. (b) Graph the AP L curve over the range of L = 1….25, given that K = 100.
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Unformatted text preview: (c) Derive the marginal products for capital and labor, and show their relationship with the average product for this particular production function. Add the MP L curve to the graph in part (b)—note any unusual properties. (d) Consider the isoquant for Q = 10. What is the MRTS for the following points. K = 25, L = 4, K= L = 10, and K = 4, L = 25. Does the function show a diminishing MRTS ?...
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