1) The document discusses a production function for a telecommunications firm with output Q, capital K (number of internet servers), and labor L (labor hours).
2) It asks the reader to (a) plot the isoquant for an output level of Q=200, (b) determine if the production function exhibits increasing, decreasing, or constant returns to scale, and (c) determine if the marginal product of labor is increasing, decreasing, or constant when capital is held fixed at 8 units.
3) The document provides the production function and solves for the isoquant equation to plot the curve for part A.
1) The document discusses a production function for a telecommunications firm with output Q, capital K (number of internet servers), and labor L (labor hours).
2) It asks the reader to (a) plot the isoquant for an output level of Q=200, (b) determine if the production function exhibits increasing, decreasing, or constant returns to scale, and (c) determine if the marginal product of labor is increasing, decreasing, or constant when capital is held fixed at 8 units.
3) The document provides the production function and solves for the isoquant equation to plot the curve for part A.
1) The document discusses a production function for a telecommunications firm with output Q, capital K (number of internet servers), and labor L (labor hours).
2) It asks the reader to (a) plot the isoquant for an output level of Q=200, (b) determine if the production function exhibits increasing, decreasing, or constant returns to scale, and (c) determine if the marginal product of labor is increasing, decreasing, or constant when capital is held fixed at 8 units.
3) The document provides the production function and solves for the isoquant equation to plot the curve for part A.
1) The document discusses a production function for a telecommunications firm with output Q, capital K (number of internet servers), and labor L (labor hours).
2) It asks the reader to (a) plot the isoquant for an output level of Q=200, (b) determine if the production function exhibits increasing, decreasing, or constant returns to scale, and (c) determine if the marginal product of labor is increasing, decreasing, or constant when capital is held fixed at 8 units.
3) The document provides the production function and solves for the isoquant equation to plot the curve for part A.
1) Leann's Telecommunication firm production function is given by F(K,L)=200(KL) 2/3 , where K is the number of internet servers they use, and L is the number of labor hours she uses. a) Plot the isoquant of the firm for output level Q=200. b) Does this production function exhibit increasing, constant or decreasing returns to scale? Explain. c) Holding the number of internet servers constant at 8, is the marginal product of labor increasing, constant or decreasing as more labor is used? Here’s the best way to solve it. Expert-verified (a) Production function: F(K,L) = 200(KL)2/3 => Q = 200(KL)2/3 Isoquant represents the combination of capital and labor required to produce a given level of Q It is given that output level is 200, i.e., Q=200 -------------------------- Q = 200 (KL)2/3 => 200 = 200 (KL)2/3 => (200 / 200) = (KL)2/3 => 1 = (KL)2/3 => (1)3/2 = [(KL)2/3]3/2 => 1 = (KL) => K = (1 / L) -----------------> isoquant equation for Q=200 ----------------------------------------------------------------------------