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Phoebe raises peaches. Where N is the number of units of labor she uses and L...

Phoebe raises peaches. Where N is the number of units of labor she uses and L is the

number of units of land she uses, her output is f(N,L) = N0.5L0.5 bushels of peaches.

  1. (a) On the graph (horizontal axis: L, vertical axis: N), plot some input combinations that give her an output of 4 bushels. Sketch a production isoquant that runs through these points. What is the function representation of this isoquant?

  2. (b) What is property of returns to scale based on this production function exhibits?

  3. (c) In the short run, the amount of land she uses is not varied. On a new graph, draw a curve ( in blue to show Phoebe’s output as a function of labor input if she has 1 unit of land. Plot points on your graph at which the amount of labor is 0, 1, 4, 9, and 16 and label them. What is the slope of this curve? How is change as the amount of labor increase?

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