A firm produces quantity Q of breakfast cereal using Labour L and material M with the production function Q = 50(ML) + M + L. The marginal product functions for this production function are M 1 MP, = 25()ž +1 MPM = 25() +1 Are the returns to scale increasing, constant, or decreasing for this production function.

A firm produces quantity Q of breakfast cereal using Labour L and material M with the production function Q = 50(ML) + M + L. The marginal product functions for this production function are M 1 MP, = 25()ž +1 MPM = 25() +1 Are the returns to scale increasing, constant, or decreasing for this production function.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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