Suppose the production of electricity requires just two inputs, capital and labor, and that the production function

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Suppose the production of electricity requires just two inputs, capital and labor, and that the production function is Cobb-Douglas. Now consider the isoquants corresponding to three different levels of output: Q = 100,000 kilowatt-hours, Q = 200,000 kilowatt-hours, and Q = 400,000 kilowatt-hours. Sketch these isoquants under three different assumptions about returns to scale: constant returns to scale, increasing returns to scale, and decreasing returns to scale.
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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