Question

Graph the short-run total product curves for each of the following production functions if K is fixed at K0 = 4.

(a) Q = F(K, L) = 2K + 3L

(b) Q = F(K, L) = K^(2)L^(2)

Respectively, do they obey the law of diminishing returns?

Answer 1

Answer A

if K=4 then,

. The corresponding curve is,

Answer B

If the K=4, then,

. The corresponding graph is,

The first production function showing the constant marginal cost production and the second production function shows the increasing marginal cost of production. SO neither of production function shows the diminishing returns.