Question
2.Suppose that Q = 2LK 0.25 , where Q is output, L represents labor and K is capital. (1)Is the function homogeneous? (2)Is the production
2.Suppose that Q = 2LK 0.25, where Q is output, L represents labor and K is capital.
(1)Is the function homogeneous?
(2)Is the production function increasing returns to scale?
(3)What happens to Q if labor increases by 10% and capital is cut by 10%?
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Essentials Of Mis
Authors: Kenneth Laudon
8th Edition
1292153776, 9781292153773
