Given a production function as the following: Q = f (K, L) = K 0.3 L 0.5
Find the second order partial derivatives fKK, fLL, fKL to answer the two questions below:
(You must explain the answers in detail)
a) Are we experiencing The Law of Diminishing Returns in the use of K and L?
b) How are K and L related to each other (as substitutes or complementary inputs)?