Question
[20 points] Consider the following two production functions: q(K, L)=KB Suppose that a 1 and B=1 q(K,L)-Ka+LB (a) Does production function I have increasing,
[20 points] Consider the following two production functions: q(K, L)=KB Suppose that a 1 and B=1 q(K,L)-Ka+LB (a) Does production function I have increasing, constant, or diminishing returns to scale? Explain. (b) Does production function 2 have increasing, constant, or diminishing returns to scale? Explain.
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Signals and Systems using MATLAB
Authors: Luis Chaparro
2nd edition
123948126, 978-0123948120
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