Suppose the production function for product x is given by where q represents the annual quantity of product x produced, k represents annual capital input and l represents annual labour input. a. If k= 10, graph the total and average productivity of labour curves. At what level of labour input does this average productivity reach a maximum? How many units of product x are produced at that point? b. Again if k= 10, graph the MPl curve. At what level of labour input does MPl= 0? c. Suppose capital inputs double. How would your answers to parts (a) and (b) change? d. Does the production function for product x exhibit constant, increasing, or decreasing returns to scale?
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