The production function is:
Q=ALaKb
where a > 0 and b > 0.
a. The marginal product of labor is:
MPl =
b. The marginal product of labor is:
MPk=
c. The marginal rate of technical substitution is
MRTS
d. Show that the isoquants for this production function are convex. (Show that MRTS diminishes as L increases. Why?)
e. Derive the equation for the long-run expansion path.