A firm's production function is Q = 5L2/3K1/3 with MPK = (5/3)L2/3K2/3 and MPL = (10/3)L1/3K1/3. a)
Question:
a) Does this production function exhibit constant, increasing, or decreasing returns to scale?
b) What is the marginal rate of technical substitution of L for K for this production function?
c) What is the elasticity of substitution for this production function?
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a That aK 13 aL 23 a 13 a 23 K 13 L 23 a K 13 L 2...View the full answer
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