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Consider the Production Function
Y = K \sqrt{\mathrm{K}} N \sqrt{N}

Question 31

Essay

Consider the production function
Y = K \sqrt{\mathrm{K}} N \sqrt{N}
a.Compute output when K = 81 and N = 100.
b.Is this production function characterized by constant returns to scale? Explain.

Correct Answer:

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a.Y = 9 * 10 = 90
b.If both K ...

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