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R1 A firm produces quantity Q of batteries using labor L and capital K with the production function .... Q = 50(KL)^0.5 + K +
R1
A firm produces quantity Q of batteries using labor L and capital K with the production function .... Q = 50(KL)^0.5 + K + L
(A) Over which range of L does the firm face diminishing marginal returns to labor? Explain and include calculations.
(B) Are the returns to scale increasing, constant, or decreasing for this production function? Explain.
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