A rm claims that it has the following production function: Q 3 4L 2P

A ¢rm claims that it has the following production function:

Q ¼ 3 þ 4L þ 2P where Q ¼ output, L ¼ labour and P ¼ paper.

^ Does this production function include all relevant inputs? Explain.

^ Does this production function seem reasonable, if applied to all possible values of L and P? Explain.

^ Does this production function exhibit increasing or decreasing marginal returns?