Qa firm sells its production in a perfectly competitive

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Q. A firm sells its production in a perfectly competitive market at a fixed cost of $10 per unit. It buys 2 inputs L as well as K at costs of $15 / unit as well as $50/ unit respectively as well as has following production function: Q=100L^0.3K^0.5.

a. By using calculus show that the production function exhibits diminishing returns to labor. Interpret your answer.

b. Currently show that if the same production functions also has diminishing returns to capital.

c. The return to capital as well as labor is same? Briefly clarify your answer.

Reference no: EM13353471

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