6.21. A firm produces a quantity Q of breakfast cereal using labor L and material M with...

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6.21. A firm produces a quantity Q of breakfast cereal using labor L and material M with the production function The marginal product functions for this production function are

a) Are the returns to scale increasing, constant, or decreasing for this production function?

MPM ! 25B L

" 1 MPL ! 25B M

" 1 Q ! 501ML " M " L.

b) Is the marginal product of labor ever diminishing for this production function? If so, when? Is it ever negative, and if so, when?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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Question Posted: Oct 15, 2024 03:01 AM

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6.21. A firm produces a quantity Q of breakfast cereal using labor L and material M with...

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Microeconomics

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