Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If we are using 200 units of labor and 200 units of capital to produce 1000 units of output and we double our labor and

  1. If we are using 200 units of labor and 200 units of capital to produce 1000 units of output and we double our labor and capital to 400 each and output increases to 3500,

what kind of returns to scale do we have?Why?Draw the LAC for this firm.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey M. Wooldridge

2nd Edition

0324113641, 9780324113648

More Books

Students also viewed these Economics questions

Question

How do cyclic redundancy checks work?

Answered: 1 week ago

Question

mH nat

Answered: 1 week ago