suppose that the production function for a


Suppose that the production function for a commodity is given by Q = 10√LK

Where Q is the quantity of output, L is the quantity of labor, and K is the quantity of capital. (a) Calculate Q when L=1 and K=1, and L=2 and K=2, then indicate whether this production function exhibits constant, increasing, or decreasing returns to scale. (b) Given K=1, show the change in Q if L changes from 1 to 2, and 2 to 3, and does the production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: suppose that the production function for a
Reference No:- TGS0489739

Expected delivery within 24 Hours