problem_set3

# problem_set3 - product of x , the marginal product of y and...

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Ecn 100 - Intermediate Microeconomic Theory University of California - Davis NOT due February 10, 2012 James Bushnell Problem Set 3: This HW does NOT need to be handed in 1. One Input Production Functions Eds building company has the production function q = 20 L - L 2 . Where L is the quantity of labor Ed employs. (a) Find the Marginal Product of Labor ( MP L ) and the the Average Product of Labor ( AP L ). (b) For what values of L is MP L > 0? For what values is it diminishing? (c) Draw on a graph the MP L and AP L , where the horizontal axis is L and the vertical is either MP L or AP L .

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2 Problem Set 3 2. Two Input Production Functions For the ﬁrst two production functions given below, derive expressions for the marginal
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Unformatted text preview: product of x , the marginal product of y and the technical rate of substitution, graph three isoquants and determine whether the technology exhibits increasing, constant or decreasing returns to scale. For the last production function, you only need to graph the isoquants and determine whether the technology exhibits increasing, constant or decreasing returns to scale. (a) f ( x,y ) = 5 x 3 4 y 3 4 Problem Set 3 3 (b) f ( x,y ) = 2 x + 3 y 1 2 (c) f ( x,y ) = min ( x, 3 y )...
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## problem_set3 - product of x , the marginal product of y and...

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