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You may use a four-function calculator. For each of the following, provide the following values. WHOLE NUMBERS ARE NOT REQUIRED, ASSUME INPUTS ARE DIVISIBLE, no
You may use a four-function calculator. For each of the following, provide the following values. WHOLE NUMBERS ARE NOT REQUIRED, ASSUME INPUTS ARE DIVISIBLE, no rounding! 1. Q(L,K) = 41-K-, p(L) = $5, P(K) = $120, budget(total) = $1000 Proportion of Budget spent on L = Dollars Spent on L = Units of L Purchased = Proportion of Budget spent on K = Dollars Spent on K = Units of K Purchased = Q= 2. Q(L,K) = 41-K-, p(L) = $5, P(K) = $120, budget(total) = $2000 Proportion of Budget spent on L = Dollars Spent on L = Units of L Purchased = Proportion of Budget spent on K = Dollars Spent on K = Units of K Purchased = Q = Do we have increasing, decreasing, or constant returns to scale? (Between 1&2) How do we know this based on Q? How do we know this based on our exponents
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