Invited Presentations Given Between July 1, 2001 – June 30 ...

Figure 6.5. 12) Provide a graph and an explanation to show that the production function Q = L.5K.5 has diminishing marginal product of labor but has constant returns to scale. Answer: See Figure 6.5. The MPL = .5*L-.5K.5 so as the amount of labor increases the MPL falls. The convex shape of the isoquants illustrates the diminishing marginal ... ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download