A firm has the following production function: Q = 9L2/3K1/3 Where Q is output, L is labor and K is Capital. Where Q is output, L is labor and K is Capital. (a) What sort of returns to scale characterize this production function?   (b) Derive the marginal product of labor and capital.   (c) What do we mean when we say the production function is linearly homogenous?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter7: Production Economics
Section: Chapter Questions
Problem 5E
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A firm has the following production function:

Q = 9L2/3K1/3

Where Q is output, L is labor and K is Capital.

Where Q is output, L is labor and K is Capital.

(a) What sort of returns to scale characterize this production function?

 

(b) Derive the marginal product of labor and capital.

 

(c) What do we mean when we say the production function is linearly homogenous?

 

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