The Long-run production function is given by; Y = 180 L1.2 K1.8 Where, Y = Output (mt/day), L = Labour (hours/mt) K = Capita (Rs/mt) a) Calculate Marginal Product of Labour (MPL) and Marginal Product of Capital (MPK), if L=12 and K=20 (05 Marks) b) Derive the equation for Isoquent and graphically show it by assuming L= 10, 15, 20 25 and 30. (05 Marks) c) Determine factor intensity and returns to scale of this production function. (05 Marks) d) Prove that the elasticity of labour is 1.2 and elasticity of capital is 1.8 (05 Marks)

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The Long-run production function is given by; Y = 180 L1.2 K1.8

Where, Y = Output (mt/day), L = Labour (hours/mt) K = Capita (Rs/mt)

a) Calculate Marginal Product of Labour (MPL) and Marginal Product of
Capital (MPK), if

L=12 and K=20 (05 Marks)

b) Derive the equation for Isoquent and graphically show it by
assuming L= 10, 15, 20 25 and

30. (05 Marks)

c) Determine factor intensity and returns to scale of this production
function. (05 Marks)

d) Prove that the elasticity of labour is 1.2 and elasticity of
capital is 1.8 (05 Marks)

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