The production function is f(K,N) = N/2 + √ K, where N is the amount of...

The production function is f(K,N) = N/2 + √ K, where N is the amount of labor used and K the amount of capital used. (a) What is returns to scale of this production function? What is the marginal product of labor? (b) In the short run, K¯ = 4. Labor is variable. On the graph, draw output as a function of labor input in the short run in blue. Draw the marginal product of labor as a function of labor input in the short run in red.

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Rahul Sunny answered 1 year ago

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