With the Cobb-Douglas production function in problem 11, if L = 10 and K = 15, what is Q? If L increases by 1% what is the level of output, Q? What percentage increase is that? How does that compare with the exponent of the function?

Problem 11

A Cobb-Douglas production function is Q = 12L.6K.5. What happens to Q if L increases by 1%? If K increases by 1%? What can you say about returns to scale?