Question: Please Help PROBLEM #2 Consider a company with the following production function over a particular range of labor and capital levels: Q(L, K)=42L2K, where L
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PROBLEM #2 Consider a company with the following production function over a particular range of labor and capital levels: Q(L, K)=42L2K, where L is the number of labor hours employed and K is the number of capital hours used. Determine whether this production process exhibits increasing, decreasing, or constant returns to scale. Briey explain your answer. Suppose that the company is able to spend $1,584 on production, that the wage rate for this industry is $22 per hour, and that the rental rate on capital is $88 per hour. Determine the combination of labor and capital that will produce the highest level of output for this technology, subject to these market conditions and financial constraint
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