Consider a short run production function q=cL+k where the value for c is 4, using L units of labour and K units of capital. Compute the marginal product of labour. Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
Consider a short run production function q=cL+k where the value for c is 4, using L units of labour and K units of capital. Compute the marginal product of labour. Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section: Chapter Questions
Problem 11QP
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Consider a short run production function q=cL+k where the value for c is 4, using L units of labour and K units of capital.
- Compute the marginal product of labour.
- Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
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