In the short run, a firm cannot vary its capital, K = 2, but it can vary

Question:

In the short run, a firm cannot vary its capital, K̅ = 2, but it can vary its labor, L. It produces output q. Explain why the firm will or will not experience diminishing marginal returns to labor in the short run if its production function is q = 10L + K?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: