In the short run, a firm cannot vary its capital and operates with K = 9. It can, however, vary the amount of labor (L) that it uses. For each production function below, explain why the firm will or...

a. q = 35L + 40K
K= 9,
Q= 35L+ 40*9
= 35L+ 360
This is a production function where the labour and capital are perfect substitutes
capital
Labour
Q= MPL= dQ/dL = 35 is constant
Here the labour and capital are substitutes at constant rate, does not depend on the level of inputs employed.
Thus, this production function does not show any diminishing marginal returns.
B
q = L0.5 K0.5
This is a Cobb Douglus production function
Capital K
Labour L
MPL = dq/dL = 0.5L^(-0.5)...