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Suppose a firm's production function can be specified as Q = 10KL .This firm's cost function exhibits a.economies of scale b.diseconomies of scale c.neither diseconomies
Suppose a firm's production function can be specified asQ = 10KL.This firm's cost function exhibits
a.economies of scale
b.diseconomies of scale
c.neither diseconomies nor economies of scale.
d.economies of scale for output levels less than some level,Q1= 1/4, and diseconomies of scale thereafter.
e.we cannot determine based on the given information
I know the answer is A but don't know why. Please explain, thx!
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