=+b. Suppose again that the government assigns L acres of land to your company for oil drilling,
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=+b. Suppose again that the government assigns L acres of land to your company for oil drilling, and that there is no rental fee for the land but you cannot use the land for any other purpose.
Given the fixed level of land available, what is your production function now? Demonstrate that it has decreasing returns to scale.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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