ssume that the production function of a firm is Q = L0.23K 0.10 . L = labor, K = capital. Referring to the information given, i. Calculate the technical suit replacement rate (MRTS) of the firm? ii. Calculate the value and explain the form of return according to the scale (return to scale) of the firm
ssume that the production function of a firm is Q = L0.23K 0.10 . L = labor, K = capital. Referring to the information given, i. Calculate the technical suit replacement rate (MRTS) of the firm? ii. Calculate the value and explain the form of return according to the scale (return to scale) of the firm
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 3SQ
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Assume that the production function of a firm is Q = L0.23K
0.10
. L = labor, K = capital.
Referring to the information given,
i. Calculate the technical suit replacement rate (MRTS) of the firm?
ii. Calculate the value and explain the form of return according to the scale (return to scale) of the firm
the?
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