5. APK function is given by: APL=KL+4. At the moment producer uses 10 units of capital and 20 units of labor. a) Find formula for the production function and current output. b) Provide an interpretation of APL at current point

Microeconomic Theory
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ISBN:9781337517942
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Chapter9: Production Functions
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5. APK function is given by: APL=KL+4. At the
moment producer uses 10 units of capital and
20 units of labor.
a) Find formula for the production function and
current output.
b) Provide an interpretation of APL at current
point
c) What can be said about returns to scale in
case of this production function? Explain.
Transcribed Image Text:5. APK function is given by: APL=KL+4. At the moment producer uses 10 units of capital and 20 units of labor. a) Find formula for the production function and current output. b) Provide an interpretation of APL at current point c) What can be said about returns to scale in case of this production function? Explain.
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