D and E only plz 1. (Textbook problem 2, page 103) An economy has the production functionY = 0.2(K+√N).In the current period, K= 100 and N = 100.a. Graph the relationship between output and capital, holding labor constantat its current value.b. What is the marginal product of capital?c. Does the marginal product of capital diminish?d.Graph the relationship between output and labor, holding capital constantat its current value.e. Does the marginal productivity of labor diminish?

Production function : Y = 0.2 ( K + N0.5 ) K = 100 , N = 100

1. (Textbook problem 2, page 103) An economy has the production function Y=0.2(K+√N). In the current period, K = 100 and N = 100. a. Graph the relationship between output and capital, holding labor constant at its current value.

1. (Textbook problem 2, page 103) An economy has the production function Y=0.2(K+√N). In the current period, K = 100 and N = 100. a. Graph the relationship between output and capital, holding labor constant at its current value.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

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Question

D and E only plz

1. (Textbook problem 2, page 103) An economy has the production function
Y = 0.2(K+√N).
In the current period, K
= 100 and N = 100.
a. Graph the relationship between output and capital, holding labor constant
at its current value.
b. What is the marginal product of capital?
c. Does the marginal product of capital diminish?
d.
Graph the relationship between output and labor, holding capital constant
at its current value.
e. Does the marginal productivity of labor diminish?

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