Solved: What sort of returns to scale does the firm face, Microeconomics

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What sort of returns to scale does the firm face

Question: A firm has carefully measured its production function, and thinks that it can be approximated by:

Q = K^0.55*L^0.45, where Q = units of output, K = units of capital, and L = units of labor.

Q1. What is output elasticity in this case?

Q2. What sort of returns to scale does the firm face? Explain.

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Microeconomics: What sort of returns to scale does the firm face

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Microeconomics: What sort of returns to scale does the firm face

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