In the short term, a firm cannot vary its capital and operates with K = 9. It can, however, vary the amount of labor (L) that it uses. For each production function below, explain why the firm will or will not experience diminishing marginal returns to labor in the short run. q = 35L + 40K q = L0.5 K0.5 q = min{3L,2}
In the short term, a firm cannot vary its capital and operates with K = 9. It can, however, vary the amount of labor (L) that it uses. For each production function below, explain why the firm will or will not experience diminishing marginal returns to labor in the short run. q = 35L + 40K q = L0.5 K0.5 q = min{3L,2}
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section21.3: Production
Problem 2ST
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In the short term, a firm cannot vary its capital and operates with K = 9. It can, however, vary the amount of labor (L) that it uses. For each production function below, explain why the firm will or will not experience diminishing marginal returns to labor in the short run.
- q = 35L + 40K
- q = L0.5 K0.5
- q = min{3L,2}
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