Solution-Constant or decreasing returns to scale

Constant or decreasing returns to scale

Reference no: EM132519010

Bee's Brewery production function is given by = ( , ) = 2√, where K is the number of vats she uses and L is the number of labour hours.

Prove whether this production process exhibits increasing, constant or decreasing returns to scale.
Holding the number of vats constant at 4, explain whether the marginal product of labor is increasing, constant or decreasing as more labor is used.

Reference no: EM132519010

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Constant or decreasing returns to scale

Reference no: EM132519010

Reference no: EM132519010

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