Consider a short run production function q = cL+K,using L units of labour and K units of capital: (c=0) 1.Compute the marginal product of labour. 2.Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
Consider a short run production function q = cL+K,using L units of labour and K units of capital: (c=0) 1.Compute the marginal product of labour. 2.Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
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 5E
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Consider a short run production function q = cL+K,using L units of labour and K units of capital: (c=0)
1.Compute the marginal product of labour.
2.Does the production function exhibit decreasing, increasing or constant returns to scale? Explain your answer.
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