Question

7) Production. LR) is the production function with Las labor and Kas a fixed level of capital Draw This production function from the side view and illustrate areas that are technologically infeasible, technologically efficient, and technologically inefficient. side view and illor and K as a fi technologically b) O=f(L,K) is the production function with both labor and capital variable. Draw an isoquant for the quantity Q and illustrate areas that are: technologically infeasible for producing Qi. technologically efficient for producing Qi, and technologically inefficient for producing Q. c) Describe neutral technological progress

Answer 1

A-THtthe diagram, od haresarts the pradeuctien untan Trchndagically feaidble aboue the fraducter Technalagically an the praductin tinctor Technegically int and under the raducten tendtan Tahndogically inllicent flyR) hent The area hunctran feacible is Tahnelafically epicent -laber Curus ahapesant The haquant 1the raducee marked in hnelagi cally pacile Te The are areas adjacent tgure lhiedent Anfhiciant he aid to A Technical chang e Laber neither it be Neutial labeur sauing and thu neither becomes cafital saing cafital mangia nor lex imfortart labarur r more nor