a) What is a production Function? b)Maseno Springs Company has a production function that takes the...

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a) What is a production Function? b)Maseno Springs Company has a production function that takes the following formQ=AKL. The company hires labour at the rate w and pays for capital at the rate of r per unit and the company seeks to maximise profit. i) What are the critical values of K and L that will maximise output? ii) Explain the meaning of the terms A, a and 8 Marks 3 Marks ii) Using the above equation when does the function demonstrate increasing, constant and 3 Marks decreasing returns to scale? a) What is a production Function? b)Maseno Springs Company has a production function that takes the following formQ=AKL. The company hires labour at the rate w and pays for capital at the rate of r per unit and the company seeks to maximise profit. i) What are the critical values of K and L that will maximise output? ii) Explain the meaning of the terms A, a and 8 Marks 3 Marks ii) Using the above equation when does the function demonstrate increasing, constant and 3 Marks decreasing returns to scale?

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a A production function is a mathematical relationship that represents the relationship between inputs factors of production and the resulting output ... View the full answer