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2. A zero xed-cost firm has a Cobb-Douglas production function F(L,K) = iff'Hlst3 with a > 0 and {i > 0. (a) First, show that
2. A zero xed-cost firm has a Cobb-Douglas production function F(L,K) = iff'Hlst\"3 with a > 0 and {i > 0. (a) First, show that such a production function exhibits decreasing returns to scale if and only if a + [i 2, then the firm has \"infinite\" (or maximum capactiy) supply, whereas if p
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