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Can I have some help with this 1. A firm has a production function given by F(K, L) = KQLE (a) For which values of
Can I have some help with this
1. A firm has a production function given by F(K, L) = KQLE (a) For which values of a and 3 will this function be constant returns to scale? For which will it be increasing or decreasing? (Hint: your answer will depend on the sum of oz and E). (b) Find the marginal product of capital and labor. For which values of oz and 3 does the firm have diminishing marginal productivity of capital and labor? (c) Based on your answers above, find an example of an a and where the firm has diminishing marginal products of capital and labor and increasing returns to scale. Then find an example where the firm has diminishing marginal products to each input and constant returns to scale. Finally, find an example with diminishing marginal products and decreasing returns to scale. (cl) Find the contingent demands for L and K as a function of Q, w and v (keeping a and ,6 as parameters) (e) How do a and B affect the firm's demand for capital and labor? Specifically, if the ratio of oz to [5' increases. what happens to the firm's demand for L relative to KStep by Step Solution
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