Suppose that Q = 2LK 0.25 , where Q is output, L represents labor and K is

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Suppose that Q = 2LK 0.25 , where Q is output, L represents labor and K is capital.

(1) Is the function homogeneous?

(2) Is the production function increasing returns to scale?

(3) What happens to Q if labor increases by 20% and capital is cut by 30%?

Posted Date: Dec 17, 2021 11:01 AM

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Suppose that Q = 2LK 0.25 , where Q is output, L represents labor and K is

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1 The production function is Q 2LKO25 Suppose both La... View the full answer

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