A firm's production is given by q = 5L 3 K 3. (a) Calculate APL and MPL. Determine if the production function exhibits the law of diminishing marginal returns. Calculate the output (production) elasticity with respect to labor. (b) Calculate MRTS. Determine if the production function exhibits the law of diminishing MRTS.

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Chapter12: The Cost Of Production
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Law of diminishing returns...... 

1
A firm's production is given by q = 5L 3 K 3
(a) Calculate APL and MPL. Determine if the production function exhibits the law of diminishing marginal returns. Calculate the
output (production) elasticity with respect to labor.
(b) Calculate MRTS. Determine if the production function exhibits the law of diminishing MRTS.
2.
Transcribed Image Text:1 A firm's production is given by q = 5L 3 K 3 (a) Calculate APL and MPL. Determine if the production function exhibits the law of diminishing marginal returns. Calculate the output (production) elasticity with respect to labor. (b) Calculate MRTS. Determine if the production function exhibits the law of diminishing MRTS. 2.
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