The following production function, q (L.)fallsstays constantrises(L,K) = — KVALV² + — Kincreasing returns to scaleconstant returns to scaledecreasing returns to scalewill save this response.will have an average cost function that✓ because it has

Returns to scale refers to the proportionate change in output when the respective inputs are…

The following production function, q (L,K) = -K ¹/4 L 1/2+K1/6, will have an average cost function that 4 falls stays constant rises increasing returns to scale constant returns to scale will save this response. because it

The following production function, q (L,K) = -K ¹/4 L 1/2+K1/6, will have an average cost function that 4 falls stays constant rises increasing returns to scale constant returns to scale will save this response. because it

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following production function, q (L.)
falls
stays constant
rises
(L,K) = — KVALV² + — K
increasing returns to scale
constant returns to scale
decreasing returns to scale
will save this response.
will have an average cost function that
✓ because it has

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