12.Consider the production function Y= AKCL1-a, where A is a constant, L is labour, Kis capital and a= 0. Which of the following is true? Group of answer choices 1.There are decreasing returns to scale 2.The marginal product of labour is diminishing 3.The marginal product of labour is constant 4.There are increasing returns to scale
12.Consider the production function Y= AKCL1-a, where A is a constant, L is labour, Kis capital and a= 0. Which of the following is true? Group of answer choices 1.There are decreasing returns to scale 2.The marginal product of labour is diminishing 3.The marginal product of labour is constant 4.There are increasing returns to scale
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 6P
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