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When is the first homework due?
Christopher Makler
Stanford University Department of Economics
Econ 50: Lecture 3
Goal for Today: Analyze how different functional forms can be used to model different production processes
Intuition: no matter how many hours he works, and how many nets he uses,
he can catch the same number of fish with 1 net as he can using 2 hours of labor.
What does an isoquant look like?
What does the isoquant for \(q = 20\) look like?
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What happens to an isoquant if \(a\) increases?
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What do the isoquants look like?
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What does the isoquant for \(q = 4\) look like?
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When does the production function
exhibit diminishing marginal product of labor?
Does this exhibit diminishing, constant or increasing MPL?
Does this exhibit decreasing, constant or increasing returns to scale?
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When does the production function
exhibit constant returns to scale?