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help Consider the estimated Cobb-Douglas production function is Q = 10k0.510.5 i. The output elasticities of capital is and the output elasticities of labor is
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Consider the estimated Cobb-Douglas production function is Q = 10k0.510.5 i. The output elasticities of capital is and the output elasticities of labor is If the firm increases only the quantity of capital used by 10 percent, output will increase by percent. If the firm increases only the quantity of labor used by 20 percent, output will increase by percent. ii. This production function indicates (increasing/constant/decreasing) returns to scale. iii. If the firm increases at the same time both the quantity of capital and the quantity of labor used by 20 percent, output will increase by percentStep by Step Solution
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