If a firm has a production function of the form: Q = LK³, what can we conclude? The firm has convex production function and will experience constant marginal returns to labour and increasing marginal returns to capital. The firm has a linear production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital. The firm has a quasi-concave production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital. The firm has a convex production function and will experience increasing marginal returns to labour and increasing marginal returns to capital. O The firm has a quasi-concave production function and will experience constant marginal returns to labour and increasing marginal returns to capital.

If a firm has a production function of the form: Q = LK³, what can we conclude? The firm has convex production function and will experience constant marginal returns to labour and increasing marginal returns to capital. The firm has a linear production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital. The firm has a quasi-concave production function and will experience decreasing marginal returns to labour and increasing marginal returns to capital. The firm has a convex production function and will experience increasing marginal returns to labour and increasing marginal returns to capital. O The firm has a quasi-concave production function and will experience constant marginal returns to labour and increasing marginal returns to capital.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.10P

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