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A. Assume that an enterprise when both capital and labor are 1, the output level is 20, 1 unit of labor and 1 unit of
A. Assume that an enterprise when both capital and labor are 1, the output level is 20, 1 unit of labor and 1 unit of capital can produce 20 units. When inputs are 10, the output level is 50, and 80 when labor and capital is 20. Required: 1. Present thisin a table then provide a graph and determine the type of return to scale. 2. When labor and capital in this enterprise increase, output also increases by a larger proportion as to how much. Justify your answer B. 1 unit of labor and 1 unit of capital can produce 50 units of output. 10 units of inputs produce 100 units of output. With each increase, both inputs and outputs double, so they can increase by the same percentage, 100%. From this, make a graph and determine what type of return to scale
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