4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production Function Q=K¹/3L2/3 Currently K = 4 and L=4. Suppose Jake doubles inputs to K=8 and L=8, as a result of this increase in input use a. Jake realizes constant returns to scale. b. Jake realizes increasing returns to scale c. Jake suffers decreasing returns to scale d. Jake realizes he is operating at minimum efficient scale
4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production Function Q=K¹/3L2/3 Currently K = 4 and L=4. Suppose Jake doubles inputs to K=8 and L=8, as a result of this increase in input use a. Jake realizes constant returns to scale. b. Jake realizes increasing returns to scale c. Jake suffers decreasing returns to scale d. Jake realizes he is operating at minimum efficient scale
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 20P
Related questions
Question
![4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production
Function
Q=K¹/³L2/3
Currently K = 4 and L = 4. Suppose Jake doubles inputs to K=8 and L=8, as a result of
this increase in input use
a. Jake realizes constant returns to scale.
b. Jake realizes increasing returns to scale
c. Jake suffers decreasing returns to scale
d. Jake realizes he is operating at minimum efficient scale](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F827ba08d-994f-4772-baee-875014f5695d%2Ff3d930f4-4fbe-4036-bb3a-ec1368c53734%2Fmknykg_processed.png&w=3840&q=75)
Transcribed Image Text:4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production
Function
Q=K¹/³L2/3
Currently K = 4 and L = 4. Suppose Jake doubles inputs to K=8 and L=8, as a result of
this increase in input use
a. Jake realizes constant returns to scale.
b. Jake realizes increasing returns to scale
c. Jake suffers decreasing returns to scale
d. Jake realizes he is operating at minimum efficient scale
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