6.23. A firms production function is Q ! 5L2/3 K1/3 with MPK ! (5/3)L2/3K#2/3 and MPL !...

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6.23. A firm’s production function is Q ! 5L2/3 K1/3 with MPK ! (5/3)L2/3K#2/3 and MPL ! (10/3)L#1/3K1/3

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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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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