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Let the production function be as follow: 2. L0.7 K.3 q(L, K) Also assume w 2 and r=4 Find out if we have increasing, decreas

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Doule the input Land k, weget / 0-240.3 03 07 2 becaue jneaty hepts Land k Jecataua t utout bythe ame amaut Thi inlee thatthe31 2- (31) K k s 3 L 14 Pesduetin fuedn Put k 3L 14 0.3 3 L 14 O.3 14 0-3 14 0-3 0.3 14 3 14 14ke13 14 test Aumdien LRTL +4 3 14 0.3 4 14 3 Avexge cost AT LRTC 0.3 14 14 93 14 ATC + 3 14Tha Lost is enastant ih g because dATC = 0.

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