If a firm has a production function of the form: Q = LK1/2, what can we conclude? O The firm has constant marginal returns to labour and increasing marginal returns to capital. The firm has decreasing marginal returns to labour and increasing marginal returns to capital. The firm has constant marginal returns to labour and constant marginal returns to capital. The firm has constant marginal returns to labour and decreasing marginal returns to capital. The firm has increasing marginal returns to labour and increasing marginal returns to capital.
If a firm has a production function of the form: Q = LK1/2, what can we conclude? O The firm has constant marginal returns to labour and increasing marginal returns to capital. The firm has decreasing marginal returns to labour and increasing marginal returns to capital. The firm has constant marginal returns to labour and constant marginal returns to capital. The firm has constant marginal returns to labour and decreasing marginal returns to capital. The firm has increasing marginal returns to labour and increasing marginal returns to capital.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 7E
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