A firm has the following production function: Q = 9L2/3K1/3 Where Q is output, L is labor and K is Capital. Where Q is output, L is labor and K is Capital. (a) What sort of returns to scale characterize this production function? (b) Derive the marginal product of labor and capital. (c) What do we mean when we say the production function is linearly homogenous?
A firm has the following production function: Q = 9L2/3K1/3 Where Q is output, L is labor and K is Capital. Where Q is output, L is labor and K is Capital. (a) What sort of returns to scale characterize this production function? (b) Derive the marginal product of labor and capital. (c) What do we mean when we say the production function is linearly homogenous?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm has the following production function:
Q = 9L2/3K1/3
Where Q is output, L is labor and K is Capital.
Where Q is output, L is labor and K is Capital.
(a) What sort of returns to scale characterize this production function?
(b) Derive the marginal product of labor and capital.
(c) What do we mean when we say the production function is linearly homogenous?
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