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You've Been Asked by Your Manager to Choose Between the Following

Question 97

Essay

You've been asked by your manager to choose between the following three production functions based on returns to scale:
Q = 10K2L1
Q = 10K0.5L0.5
Q = 10K0.25L0.5
She would like you to choose the one that exhibits increasing returns to scale and to provide evidence to support your decision.

Correct Answer:

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a. With this production function, a doub...

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