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A company has the following production function: Q = K a L b where b=0,5 and a+b=1 and K is capital and L is labor
A company has the following production function:
Q = KaLbwhereb=0,5anda+b=1 and K is capital and L is labor
- Comment on the returns to scale in this company
- IfQ=40, the price of capital,c=2, and the price of labor,w=18, how much is then demanded by the respective input?
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Intermediate Microeconomics and Its Application
Authors: walter nicholson, christopher snyder
11th edition
9781111784300, 324599102, 1111784302, 978-0324599107
