Answer to Question #307480 in Microeconomics for Munni

Question

Consider a production function of the following form: X = 100 L , where X = output

and L = input of labor (assuming other inputs are fixed).

a. Construct a figure like Figure 6-1 and a table like Table 6-1 for inputs of L = 0, 1, 2, 3,

and 4.

b. Explain whether this production function shows diminishing returns to labor. What

values would the exponent need to take for this production function to exhibit increasing

returns to labor?