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Consider the production function Q = 2(KL)1/2.
a) Wrtie the equation of a sample isoquant when firm produces 10 unit of output.
b) What is the marginal rate of technical substitution of labor for capital if MP(L) = (K1/2) * (L-1/2) and MP(K) =(K-1/2) * (L1/2). Give an economic interpretation for the marginal rate of technical substitutionof labor for capital.
c) What is the average product of labor?
d) Does this production function exhibit increasing, constant or decreasing returns to scale?
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