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4. Below are production functions that turn capital (K) and labor (L) into output. For each...


4. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below
5. For this problem you will analyze the elasticity of substitution and the isoquant graphs for the following production func
(c) What is the elasticity of substitution for F? (3 points)
4. Below are production functions that turn capital (K) and labor (L) into output. For each of the production functions below, state and PROVE whether it is Constant/Increasing/or Decreasing Returns to scale. That is, you want to see how production changes when you increase all inputs (K.L) by a factor of a, where a > 1: (4 points each) (a) F(K,L) =KİL (b) F(K,L) = min 4K, 2L] + 20 (c) F(K,L) = 4K +3L
5. For this problem you will analyze the elasticity of substitution and the isoquant graphs for the following production function F(KL) = 2K1/2 1/2 (a) Graph the isoquant for F(K.L) that represents an output of 10. Be sure to show your work and label the axes clearly. Also, two points should be clearly labelled. pomis) 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 (b) What is the marginal rate of technical substitution for F? (2 points)
(c) What is the elasticity of substitution for F? (3 points)
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Answer #1

4. (a) f(K, L) = Y = ks 15 Double the inputs k and = 12k) (22) / wel get 24 kls 3) < 2 f(K, L) Because increasing the inpu(6) f(K, L) = UK + 32 Double the inputs K and Ly we jet = 412k) + 3(2L) = 214k+ 3) = 2 f (k, 2) Because increasing the inputs

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