Business, 24.04.2020 18:56 Lakenwilliams1250
S it possible that a firm's production function exhibits increasing returns to scale while exhibiting diminishing marginal productivity of each of its inputs? To answer this question, calculate the marginal productivities of capital and labor for the production of Crocs using the production function, qequalsAUpper L Superscript a Baseline Upper K Superscript bequals21.5Upper L Superscript 0.85Upper K Superscript 0.5. This production function exhibits â–Ľ an increasing a diminishing marginal product for labor and â–Ľ an increasing a diminishing marginal product for capital.
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S it possible that a firm's production function exhibits increasing returns to scale while exhibitin...
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