Q8.

a. q = 3L + 2K
q’ = 3(λL) + 2(λK) = λ (3L + 2K) = λq
This function exhibits constant return to scale.
𝜕𝑞
MPL = 𝜕𝐿 = 2K, Constant marginal productivity for L at constant K.
𝜕𝑞
MPK = 𝜕𝐾 = 3L, Constant marginal productivity for K at constant L.
b. q = √(2L + 2K)
q’ = √(2(λL) + 2(λK)) = √λ. √(2L + 2K) = √λ.q
This function exhibits decreasing return to scale.
𝜕𝑞 2
MPL = 𝜕𝐿 = 2(2𝐿+2𝐾)1/2
Decreasing marginal productivity for L at constant K.
𝜕𝑞 2
MPK = 𝜕𝐾 = 2(2𝐿+2𝐾)1/2
Decreasing marginal productivity for K at constant L.
c. q = 3LK2
q’ = 3(λL)(λK)2 = λ3 3LK2 = λ3.q
This function exhibits increasing return to scale.
𝜕𝑞
MPL = = 3K2, Constant marginal productivity for L at constant K.
𝜕𝐿
𝜕𝑞
MPK = = 6LK, Increasing marginal productivity for K at constant L.
𝜕𝐾
1 1
d. 𝑞 = 𝐿2 𝐾 2
1 1 1 1
𝑞 ′ = (λ𝐿)2 (λ𝐾)2 = λ (𝐿2 𝐾 2 ) = λq
This function exhibits constant return to scale.
1 1
𝜕𝑞 1 1 √𝐾
MPL = 𝜕𝐿 = 2 𝐿−2 𝐾 2 = 2 √𝐿
Increasing marginal productivity for L at constant K.
𝜕𝑞 1 1 1
1 √𝐿
MPK = 𝜕𝐾 = 2 𝐿2 𝐾 −2 = 2 √𝐾
Increasing marginal productivity for K at constant L.
1
e. 𝑞 = 4𝐿2 + 4𝐾
1
𝑞 ′ = (λ𝐿)2 + 4(λ𝐾)
This function exhibits decreasing return to scale.
1
𝜕𝑞 1 1 1
MPL = 𝜕𝐿 = 2 𝐿−2 = 2 √𝐿
Decreasing marginal productivity for L at constant K.
𝜕𝑞
MPK = =4
𝜕𝐾
Constant marginal productivity for K at constant L.