Given the production function Q = K.5L.5
a. Write expressions
for marginal products of K and L
b. Does production exhibit increasing, decreasing or constant returns to scale? Show proof
c. If K is held constant does marginal product of L increase, decrease or remain constant as L is increased. Show proof of your answer
d. Derive an expression for marginal rate of technical substitution of L for K
e. If Price of K = 1 and price of L =2, what quantities of K and L will be used to produce 500 units of output at least cost?