Assume that the production function is given by: TPP =36K 1/3 L 1/2 R 1/4 where R

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Assume that the production function is given by:

TPP =36K^1/3L^1/2R^1/4

where R is the quantity of a particular raw material used.

(a) Are there constant, increasing or decreasing returns to scale?

(b) What is the marginal productivity of the raw material if K = 8, L = 16 and R = 81?

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Economics

ISBN: 978-1292187853

10th edition

Authors: John Sloman, Jon Guest, Dean Garratt

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Question Posted: Apr 03, 2019 08:24 AM

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Assume that the production function is given by: TPP =36K 1/3 L 1/2 R 1/4 where R

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a There are increasing returns to scale s...View the full answer

Economics

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