3. (5 Points) Answer these questions about a business with production function Q = 3K + 4L who
faces input prices of w = 10 and r = 2.
(a) What is the MRT SL,K? Plot some isoquants for this production process and show the MRT S
on your carefully labeled diagram.
(b) When the production process looks like this, what kind of inputs are these considered to be?
(c) Does this production function exhibit Constant, Increasing or Decreasing returns to Scale?
(d) Now consider the short run, when capital is fixed at K = 4. What production plans represent the
cost-minimizing way to produce 20 units of output?
(e) What is the total cost for your answer from part (d)?.
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
3 5 Points Answer these questions about a business with p.pdf
1. 3. (5 Points) Answer these questions about a business with production function Q = 3K + 4L who
faces input prices of w = 10 and r = 2.
(a) What is the MRT SL,K? Plot some isoquants for this production process and show the MRT S
on your carefully labeled diagram.
(b) When the production process looks like this, what kind of inputs are these considered to be?
(c) Does this production function exhibit Constant, Increasing or Decreasing returns to Scale?
(d) Now consider the short run, when capital is fixed at K = 4. What production plans represent the
cost-minimizing way to produce 20 units of output?
(e) What is the total cost for your answer from part (d)?
