4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production Function Q=K¹/3L2/3 Currently K = 4 and L=4. Suppose Jake doubles inputs to K=8 and L=8, as a result of this increase in input use a. Jake realizes constant returns to scale. b. Jake realizes increasing returns to scale c. Jake suffers decreasing returns to scale d. Jake realizes he is operating at minimum efficient scale

4. Jake's Free Runoff Bottled Water Company Produces with the Long Run Production Function Q=K¹/3L2/3 Currently K = 4 and L=4. Suppose Jake doubles inputs to K=8 and L=8, as a result of this increase in input use a. Jake realizes constant returns to scale. b. Jake realizes increasing returns to scale c. Jake suffers decreasing returns to scale d. Jake realizes he is operating at minimum efficient scale

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Lesson 7- Production Question 8
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provide detailed and straightforward solution with steps, show proper calculations please.