Exam 6: Producer Behavior

The production function for laser eye surgery is given by Q = 20K^0.5L^0.5, where Q is the number of laser eye surgeries performed per day, K is the number of eye surgery machines (which is fixed at 2 in the short run), and L is the number of employees. The marginal product of labor for L = 1 is ____.

For each of the following production functions, determine whether they exhibit constant, decreasing, or increasing returns to scale. a. Q = 4KL b. Q = K^1/3L^2/3 c. Q = K^1/3L^1/3 d. Q = min(K, 4L) e. Q = 6K + 3L