1.2. Production Functions

Part 1. Marginal Product of Inputs

Marginal products example

Find the marginal product of labor and capital for the following production function:

$$f(K,L) = 6K^2 + 3L^3$$

Part 2. Returns to Scale

Returns to Scale Example

Does the following production function have increasing, constant, or decreasing returns to scale?

$$f(K,L) = 6K^2 + 3L^3$$

Try this example problem on your own to check your understanding and then watch the video for a walkthrough of the answer.

Part 3. Isoquants and the Marginal Returns to Technical Substitution

Part 4. Common Production Functions

Production Function Examples

Find the equation for the isoquant for each of these production functions, as well as the formula for the marginal rate of technical substitution.

• $Q = 3K + 2L$
• $Q = \frac{1}{3}K^{1/3}L^{2/3}$

Try this example problem on your own to check your understanding and then watch the videos for a walk-through of the answer.

Did you feel like any of the videos above were confusing, or could use more detail? If you're a student at Iowa State University, send me a quick note at mclancy@iastate.edu, referencing the video number and your issue, if applicable.