Question: The BlackBerry production function indicated in the text is Q = 2.83L1.52 K0.82. Epple et al. (2010) estimate that the production function for U. S.
The BlackBerry production function indicated in the text is Q = 2.83L1.52 K0.82. Epple et al. (2010) estimate that the production function for U. S. housing is q = 1.38L0.144 M0.856, where L is land and M is an aggregate of all other mobile, nonland factors, which we call materials. Haskel and Sadun (2012) estimate the production function for U. K. supermarkets is Q = L0.23K0.10 M0.66, where L is labor, K is capital, and M is materials. What kind of returns to scale do these production functions exhibit?
Step by Step Solution
3.40 Rating (181 Votes )
There are 3 Steps involved in it
Increasing returns to scale is a property of a production function whereby output rises more than in ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
349-B-E-M-E (3068).docx
120 KBs Word File
