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A firm has the following production function, where Q is output, K is capital and L...

  1. A firm has the following production function, where Q is output, K is capital and L is labor:

Q = 400K0.5L0.3

Does this firm operate under increasing, decreasing or constant returns to scale, and why?

business   economics   
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Answer #1

6-S 6.3 Since Rtu 8 uw since since χ+3 <1 Hence Producho Funetou show-s DRS

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