5. The following diagram displays isoquants for different combinations of labor and capital. To ensure that the production function is depicted correctly, provide the values for Q₁, Q2 and 23 on the graph so that the production displays (a) increasing returns to scale, (b) decreasing returns to scale, (c) constant returns to scale. Capital (K) 1,000 100 10 0 10 100 Q₁ 1,000 = Q₂ Q3 - - Labor (L)

5. The following diagram displays isoquants for different combinations of labor and capital. To ensure that the production function is depicted correctly, provide the values for Q₁, Q2 and 23 on the graph so that the production displays (a) increasing returns to scale, (b) decreasing returns to scale, (c) constant returns to scale. Capital (K) 1,000 100 10 0 10 100 Q₁ 1,000 = Q₂ Q3 - - Labor (L)

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 21PAE

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