Subject :- Managerial Economics.

The Case BATA is a national rm known for different kind of shoes at economical prices. The rm is operating with large number of labor, huge amount of capital and energy inputs with the given technologies. The managers in the production wing understand that marginal products of capital, energy and labor depend on both the quantity of energy, quantity and quality of capital and quantity of labor used in the production. Suppose a hypothetical study was conducted for a year and the following Cobb-Douglas Production Function has been estimated. 0 , Ao.L15K-'5E\"-15 Where. Q = Output, L = Labor, K = Capital, E: Energy .A0 = Exogenous Technology Baguimmcnt: Being a student of managerial economics. identify the type of returns to scale under which the company is operating. Describe the economic reason of this scale as well