Question: A firm has production function Q = L3/5 K3/5. The price per unit of labour per period is 1 and the price per unit of

A firm has production function Q = L3/5 K3/5. The price per unit of labour per period is 1 and the price per unit of capital per period is 1.

(a) Derive the firm's cost function.

(b) Are there economies of scale?

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