Decreasing or constant returns to scale

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Reference no: EM138216

Q1. A firm hires 2 workers also rents 15 acres of land for a season. It produces 150,000 bushels of crop. If it had doubled its land as well as labor, production would have been 325000 bushels. Does it have increasing, decreasing or constant returns to scale?

Q2. Given the cash flow diagram A1=$200,000; A2=$300,000;A3=400,000;A4=%500,000 and A5=$100,000. Find the future value at period 5 assuming periodic interest rate 13%.

Reference no: EM138216

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