A firm produces widgets according to the production function: F(K,L) = K 1/3 L where K is

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A firm produces widgets according to the production function: F(K,L) = K ^1/3L where K is capital and lLis labour. Does the firm’s production function exhibit constant- decreasing- or increasing returns to scale? Explain your answer.

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Price theory and applications

ISBN: 978-0538746458

8th edition

Authors: Steven E landsburg

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Posted Date: Mar 06, 2024 05:08 AM

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A firm produces widgets according to the production function: F(K,L) = K 1/3 L where K is

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Price theory and applications

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