1) [2 pts] The production function q = 3K0.5L0.5 exhibits returns to scale 2) [2 pts]...

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1) [2 pts] The production function q = 3K0.5L0.5 exhibits returns to scale 2) [2 pts] Gob's spends all his money on candy apples and magic. The price of candy apples and the price of magic are both $1 per unit. On a graph, draw Gob's monthly budget line if he has an income of $120 and additionally receives $90 each month in food stamps, which can only be spent on candy apples. Make sure to draw and label where all intercepts and kink points occur. 3) [2 pts] You share an apartment with your 6 brothers. As a result, the room smells very bad. Each person living in the room wants the smell to go away. To get rid of the smell, someone needs to buy a bottle of Febreeze. For each person, the cost of a bottle of Febreeze is less than the value to them of eliminating the smell, yet no one bought a bottle, thinking someone else would. The behavior of the group displays a problem discussed related to public goods called 1) [2 pts] The production function q = 3K0.5L0.5 exhibits returns to scale 2) [2 pts] Gob's spends all his money on candy apples and magic. The price of candy apples and the price of magic are both $1 per unit. On a graph, draw Gob's monthly budget line if he has an income of $120 and additionally receives $90 each month in food stamps, which can only be spent on candy apples. Make sure to draw and label where all intercepts and kink points occur. 3) [2 pts] You share an apartment with your 6 brothers. As a result, the room smells very bad. Each person living in the room wants the smell to go away. To get rid of the smell, someone needs to buy a bottle of Febreeze. For each person, the cost of a bottle of Febreeze is less than the value to them of eliminating the smell, yet no one bought a bottle, thinking someone else would. The behavior of the group displays a problem discussed related to public goods called

Answer rating: 100% (QA)

1 The production function q 3K05L05 exhibits returns to scale This means that when both the inputs o... View the full answer