Q1. Y = F(K, L) = A K0.4L1.0
a) Calculate the marginal product of labor (MPL)
b) Does this production function exhibit diminishing marginal product of labor? Please explain your reason.
Q2. Identify three types of competition that most firms encounter other than competition from other firms in their industry in their home country.
Q3. Suppose the current equilibrium price for American cheese is $1.00 per pound. Suppose the French suddenly develop a preference cheese of American. Explicate the impacts of this unlikely development on all the relevant markets.