3 Determine the marginal product of capital and labour in the following pro- duction function: Q=5L-2LK +2LK
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3 Determine the marginal product of capital and labour in the following pro- duction function: Q=5L-2LK +2LK - 5K. (i) Do the factors exhibit diminishing returns? (hint - returns to the factors are indicated by the sign of the second derivatives - why?) (ii) What is the nature of returns to scale?
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Related Book For
Fundamentals Of Managerial Economics
ISBN: 9781349162253
1st Edition
Authors: Julian Gough, Stephen Hill
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