You are given the production function: Q(K,L)=10KαLβ Does the above function exhibit increasing, decreasing or constant return to scale? Illustrate why and explain what this means
You are given the production function: Q(K,L)=10KαLβ Does the above function exhibit increasing, decreasing or constant return to scale? Illustrate why and explain what this means
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 1.5CE
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You are given the production function: Q(K,L)=10KαLβ
Does the above function exhibit increasing, decreasing or constant return to scale? Illustrate why and explain what this means.
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