Identify the regions of increasing, constant, and decreasing returns to scale on the isoquant mapshown.
Answer to relevant QuestionsDo the two production functions in Problem 1 obey the law of diminishing returns?Can the Cobb- Douglas production function be used to portray a production process in which returns to scale are increasing at low output levels and are constant or decreasing at high output levels?Sketch the short- run TC, VC, FC, ATC, AVC, AFC, and MC curves for the production function Q = 3KLWhere K is fixed at 2 units in the short run, with r = 3 and w = 2.For the long- run total cost function LTC (Q) = Q2 + 10Sketch ATC, AVC, AFC, and MC.Would the market for dry cleaning be perfectly competitive in large cities such as San Francisco or New York City? Why or why not? How about in a small city such as Athens, Ohio, or Meredith, New Hampshire?
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