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additional workers. She estimated that the additional workers would generate the following total output( where each unit of output refers to 100 pages duplicated). If the price of each unit of output is $ 10 and each worker hired must be paid $ 40 per day, how many workers should Ms. Smith hire?
Problem 12: Suppose that the production function for a commodity is given by Q = 10 √LK where Q is the quality of output, L is the quantity of labor, and K is the quantity of capital.
a) Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale.
b) Does this production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?
Problem 13: Indicate whether each of the following statements is true of false and give the reason.
a) A firm should stop expanding output after reaching diminishing returns
b) If large and small firms operate in the same industry, we must have constant returns to scale.
additional workers. She estimated that the additional workers would generate the following total output( where each unit of output refers to 100 pages duplicated). If the price of each unit of output is $ 10 and each worker hired must be paid $ 40 per day, how many workers should Ms. Smith hire?
Problem 12: Suppose that the production function for a commodity is given by Q = 10 √LK where Q is the quality of output, L is the quantity of labor, and K is the quantity of capital.
a) Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale.
b) Does this production function exhibit diminishing returns? If so, when does the law of diminishing returns begin to operate? Could we ever get negative returns?
Problem 13: Indicate whether each of the following statements is true of false and give the reason.
a) A firm should stop expanding output after reaching diminishing returns
b) If large and small firms operate in the same industry, we must have constant returns to scale.