3. Frisbees are produced according to the production function q = 2K+L where q=output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour? b) If K = 25, how much L is needed to produce 100 frisbees per hour? c) Graph the q = 100 isoquant. Indicate the points on that isoquant defined in part a and part b. What is the RTS along this isoquant? Explain why the RTS is the same at every point on the isoquant. d) Graph the q = 50 and q = 200 isoquants for this production function also. Describe the shape of the entire isoquant map. e) Suppose technical progress resulted in the production function for

3. Frisbees are produced according to the production function q = 2K+L where q=output of frisbees per hour, K =capital input per hour, L =labor input per hour. a) If K = 10, how much L is needed to produce 100 frisbees per hour? b) If K = 25, how much L is needed to produce 100 frisbees per hour? c) Graph the q = 100 isoquant. Indicate the points on that isoquant defined in part a and part b. What is the RTS along this isoquant? Explain why the RTS is the same at every point on the isoquant. d) Graph the q = 50 and q = 200 isoquants for this production function also. Describe the shape of the entire isoquant map. e) Suppose technical progress resulted in the production function for

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

3. Frisbees are produced according to the production function q = 2K+L
where q = output of frisbees per hour, K =capital input per hour, L =labor
input per hour.
a) If K = 10, how much L is needed to produce 100 frisbees per hour?
b) If K = 25, how much L is needed to produce 100 frisbees per hour?
c) Graph the q = 100 isoquant. Indicate the points on that isoquant
defined in part a and part b. What is the RTS along this isoquant? Explain
why the RTS is the same at every point on the isoquant.
d) Graph the q = 50 and q = 200 isoquants for this production function
also. Describe the shape of the entire isoquant map.
e) Suppose technical progress resulted in the production function for
frisbees becoming q = 3K+ 1.5L. Answer part a through part d for this
new production function and discuss how it compares to the previous case.

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