Prunella raises peaches. She uses L units of labor, and T units of land to produce peaches. Her production function is f(L, T)= L¹/2+1/2 a. Write the equation and plot the isoquant for the output quantity 4. b. What is the returns to scale of this production function? c. Find the marginal products of labor and land. What is the rate of technical substitution between land and labor?
Prunella raises peaches. She uses L units of labor, and T units of land to produce peaches. Her production function is f(L, T)= L1/2T 1/2
A: Write the equation and plot the isoquant for the output quantity 4.
B: What is the returns to scale of this production function?
C: Find the marginal products of labor and land. What is the rate of technical substitution between land and labor?
D: In the short-run, Prunella cannot vary the amount of land she uses. Plot the output as a function of labor only for the fixed level of land of T=1.
E: Find the marginal product of labor from L=4 and show it on the graph. Is the marginal product of labor diminishing, constant or increasing in labor?
F: Suppose wages are constant and equal w, fixed costs are zero. Find the short-run profit maximizing level of labor for T=1.
Please see the attached photo
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
