Question: A firm's production function is Q = 5L2/3K1/3 with MPK = (5/3)L2/3K2/3 and MPL = (10/3)L1/3K1/3. a) Does this production function exhibit constant, increasing, or
A firm's production function is Q = 5L2/3K1/3 with MPK = (5/3)L2/3K−2/3 and MPL = (10/3)L−1/3K1/3.
a) Does this production function exhibit constant, increasing, or decreasing returns to scale?
b) What is the marginal rate of technical substitution of L for K for this production function?
c) What is the elasticity of substitution for this production function?
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