Answered step by step
Verified Expert Solution
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
- 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started