Question
A firm produces widgets according to the production function: F(K,L) = K 1/3 L where K is capital and lLis labour. Does the firms production
A firm produces widgets according to the production function: F(K,L) = K 1/3L where K is capital and lLis labour. Does the firm’s production function exhibit constant- decreasing- or increasing returns to scale? Explain your answer.
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Price theory and applications
Authors: Steven E landsburg
8th edition
538746459, 1133008321, 780538746458, 9781133008323, 978-0538746458
