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3. Q(L,K) = 413K-SE-2, p(L) = $5, P(K) = $120, P(E) = $50 budget(total) = $1000 Proportion of Budget spent on L = Dollars Spent
3. Q(L,K) = 413K-SE-2, p(L) = $5, P(K) = $120, P(E) = $50 budget(total) = $1000 Proportion of Budget spent on L = Dollars Spent on L = Units of L Purchased = Proportion of Budget spent on K = Dollars Spent on K = Units of K Purchased = Proportion of Budget spent on E = Dollars Spent on E = Units of E Purchased = 2. Q(L,K) = 4L K.ER, p(L) = $5, P(K) = $120,P(E) = $50 Budget(total) = $2000 Proportion of Budget spent on L = Dollars Spent on L = Units of L Purchased = Proportion of Budget spent on K = Dollars Spent on K = Units of K Purchased = Q = Do we have increasing, decreasing, or constant returns to scale? (Between 3 84) . How do we know this based on Q? How do we know this based on our exponents
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