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Q. Assume the production function for widgets is given by q = KL- .8K2 - .IV, where q represents the yearly quantity of widgets produced, K represents yearly capital input also L represents yearly labor input. a. Assume K- 10; graph the total also standard productivity of labor curves. At illustrate what level of labor input does this standard productivity reach a maximum? How many widgets areproduced at which point?
b. Once more assuming which K= 10, graph the MPL curve. At illustrate what level of labor input does MPL = 0?
c. Assume capital inputs were increased to K - 20. How would your answers to parts (a) also (b) change?
d. Does the widget production function exhibit constant, increasing or decreasing returns to scale?
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