4. A firm producing cars. The production function for shoes (Q) is: Q = K2 L2 where K is capital and L is labor. The price of K is $8 and the price of L is $2. a. What type of production function is...

4. A firm producing cars. The production function for shoes (Q) is: Q = K2 L2 where K is capital and L is<br>labor. The price of K is $8 and the price of L is $2.<br>a. What type of production function is this?<br>b. Does this production function exhibit constant, increasing or decreasing returns to scale?<br>Explain.<br>c. What is the average product of capital, average product of labor, marginal product of capital,<br>and marginal product of labor?<br>

Extracted text: 4. A firm producing cars. The production function for shoes (Q) is: Q = K2 L2 where K is capital and L is labor. The price of K is $8 and the price of L is $2. a. What type of production function is this? b. Does this production function exhibit constant, increasing or decreasing returns to scale? Explain. c. What is the average product of capital, average product of labor, marginal product of capital, and marginal product of labor?

Jun 10, 2022

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4. A firm producing cars. The production function for shoes (Q) is: Q = K2 L2 where K is capital and L is labor. The price of K is $8 and the price of L is $2. a. What type of production function is...

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