Suppose that the production function for a commodity is, Ask an Expert

Economics

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 lavor, and K is the quantity of capital.

(a) Calculate Q when L=1and K=1, and L=2 and K=2. Then compare and answer the question about the returns to scale.

(b) Given K=1, show the change in Q if L changes from 1 to 2 and 2 to 3. Answer the question about diminishing returns.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91232105

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