Production function for automobiles

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Suppose the production function for automobiles is Q = KL where Q is the quantity of automobiles produced per year, L is the quantity of labor (man-hours) and K is the quantity of capital (machine-hours). Suppose we sketch the isoquant corresponding to a quantity of Q = 100. Which of the following are true?

1. The isoquant is convex to the origin.

2. The general equation of an isoquant for this production function is K=100/L.

3. Marginal rate of technical substitution when K = 20 and L = 5 is 4.

4. Marginal rate of technical substitution MRTS L, K decreases as L increases.

Reference no: EM132396932

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