1. Consider the following production functions - Y=AK1/5L2/5 - Y=K+K1/2L2/3 (a) show if the production...
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1. Consider the following production functions - Y=AK1/5L2/5 - Y=K+K1/2L2/3 (a) show if the production functions are increasing, decreasing, or constant return to scale (b) derive marginal product capital(MPK) and marginal product labor(MPL) (c) draw graph of MPK and MPL. (For MPK, the x-axis is K(capital) and the y-axis is r (rental price). For MPL, the x-axis is L(labor) and the y-axis is w(wage).) 1. Consider the following production functions - Y=AK1/5L2/5 - Y=K+K1/2L2/3 (a) show if the production functions are increasing, decreasing, or constant return to scale (b) derive marginal product capital(MPK) and marginal product labor(MPL) (c) draw graph of MPK and MPL. (For MPK, the x-axis is K(capital) and the y-axis is r (rental price). For MPL, the x-axis is L(labor) and the y-axis is w(wage).)
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