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Assume a Cobb-Douglas function such that Q = ?K L° ? where A=1, K=20, L=16, \alpha =0.6 , and \beta=0.5 ?. Calculate Q. Does the function show increasing, decreasing, or constant returns to scale? Why? Calculate the marginal produce of K and L. Let K increase to 21 ceteris paribus and calculate the marginal product of K and L. Explain the results.

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эк 0.6-l O.S I (0.6) (20) 0.4) (20,--y (y) = 3.3 du c -1 3.oIs3.o1S

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