5. The following diagram displays isoquants for different combinations of labor and capital. To ensure that the production function is depicted correctly, provide the values for Q₁, Q2 and 23 on the graph so that the production displays (a) increasing returns to scale, (b) decreasing returns to scale, (c) constant returns to scale. Capital (K) 1,000 100 10 0 10 100 Q₁ 1,000 = Q₂ Q3 - - Labor (L)

5. The following diagram displays isoquants for different combinations of labor and capital. To ensure that the production function is depicted correctly, provide the values for Q₁, Q2 and 23 on the graph so that the production displays (a) increasing returns to scale, (b) decreasing returns to scale, (c) constant returns to scale. Capital (K) 1,000 100 10 0 10 100 Q₁ 1,000 = Q₂ Q3 - - Labor (L)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. The following diagram displays isoquants for different combinations of labor and capital. To
ensure that the production function is depicted correctly, provide the values for Q₁, Q2 and 23
on the graph so that the production displays (a) increasing returns to scale, (b) decreasing
returns to scale, (c) constant returns to scale.
Capital (K)|
1,000
100
10
0
10
100
Q₁ =
1,000
Q₂
Q35
Labor (L)

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