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Jason has a boat-building firm. It uses labor L, capital K, and materials M, to build its boats. Its production function is Q = F(L,
Jason has a boat-building firm. It uses labor L, capital K, and materials M, to build its boats. Its production function is Q = F(L, K, M) = ALK M . For what values of , , and does Jason's technology have constant returns to scale? Increasing returns to scale? Decreasing returns to scale?
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