Question: A company has the following production function: Q = K a L b where b=0,5 and a+b=1 and K is capital and L is labor

A company has the following production function:

Q = KaLbwhereb=0,5anda+b=1 and K is capital and L is labor

  1. Comment on the returns to scale in this company
  2. IfQ=40, the price of capital,c=2, and the price of labor,w=18, how much is then demanded by the respective input?

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