1. Show whether the following production functions exhibit increasing, constant, or decreasing returns to scale. a. Q = 2L + 3K b. Q = L + 5K + 10 c. Q = min (2*L, K)d. Q = 10*K*L e. Q = L2 + K2 f. Q = K.5*L.5/2 + 10 2. Let the following combinations
The post Let the production function for thingamajigs be Q = L1/2*K1/2 (this is the square root of L multiplied by the square root of K), the price of labor be $10 and the price of capital be $20. In the short run, the amount of capital is fixed at K = 100. Complete the following short run cost table for this firm appeared first on Essay Heroes.