A firm uses two inputs, capital (K) and labor (L), to produce output 9

A firm uses two inputs, capital (K) and labor (L), to produce output 9. Assume that the marginal product of labor and the marginal product of capital are always greater than zero. The figure below displays two isoquants from the firm's production function. The bundle (L = 2, K = 2) falls on the q= 1 isoquant (i.e. all bundles on the curve result in one unit of output). The bundle (L = 3, K = 4 ) falls on the q = 2 isoquant. Given this information, which statement below is true? K 4 9 = 2 N 9 = 1 N 3 L (Note: if no image appears above, click here) The production function exhibits decreasing returns to scale The production function exhibits constant returns to scale The production function exhibits increasing returns to scale There is not enough information available to say which of the above statements is true
Assume a firm's short-run cost function is given by the following expression: C(q) = 8 +4q2 Which of the following statements is true: A 1% increase in the price will increase the firm's quantity supplied by more than 1% A 1% increase in the price will increase the firm's quantity supplied by 1% A 1% increase in the price will increase the firm's quantity supplied by less than 1% The resulting percentage change in the quantity supplied depends on the initial price