Answer to Question #133090 in Microeconomics for Yong

Question

Let a production function be: f (K,L) = L/2 +√K, Where L is the amount of labor used and K is the amount of capital used.

1) Show that returns to scale are decreasing.
2) Derive the marginal product of labor and the marginal product of capital. (2.5 marks)
3). Show the returns to scale of the above production function. (5 marks)
4). In the short run, capital is fixed at 4 units and labor is variable. Derive the marginal product of labor and the average product of labor. (2.5 marks)
d. What is the short-run maximizing profit amount of labor if the cost of labor is wL=1 and the output price is S$1 per unit?

Answer 1

Dear Yong, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order