Suppose that the production function of a firm is given by the equation Q = 2K0.5L0.5 ,

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Suppose that the production function of a firm is given by the equation Q = 2K0.5L0.5 , where Q represents units of output, K units of capital, and L units of labor.

a. What is the marginal product of labor and the marginal product of capital when K = 40 and L = 10?

b. What kind of returns to scale does this production function exhibit?

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Managerial Economics: Tools For Analyzing Business Strategy

ISBN: 307174

1st Edition

Authors: Thomas J Webster

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Question Posted: Oct 08, 2024 08:04 AM

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Suppose that the production function of a firm is given by the equation Q = 2K0.5L0.5 ,

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Managerial Economics: Tools For Analyzing Business Strategy

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