4. In Chapter 9 , we studied the graph below. The curves represented in the (l,k) space are
various isoquants of a given production function. The main takeaway of this graph is that: a. The
production function displays increasing returns to scale. b. The rate of technical substitution
(RTS) for a constant-returns-to-scale production function depends only on the k/ ratio and not on
the level of production. c. The rate of technical substitution (RTS) for any production function
depends only on the k/l ratio and not on the level of production d. The intersections between any
ray through the origin and the various isoquants of a production function illustrate the problem of
multicollinearity..
4. In each of the following cases determine whether or not P(x) is a .pdf
1. 4. In each of the following cases determine whether or not P(x) is a legitimate probability
distribution function of a discrete randon sariable. If it isn't, clearly explain why not. (a)
P(x)=20x2+2x=0,1,2,3 (b) P(x)=25(5x)x=2,3,4 (c) P(x)=152x1x=0,1,2,3,4 5. Suppose that the
number of sales that a tekenarketing salesperson makes in an hour is a random variable X having
the following probability distribution: P(x)=50(x+2)(5x)x=0,1,2,3,4 (a) What is the probability
of at least one sale in an hour? (b) Twenty minutes into the hour, the salesperson has made his
first sale. What is the probability that by the end of the hour he will have made no more than 3
sales? (c) What is the mean number of sales in an hour. In other words, find x
