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Relationship between plant size and long-run average cost

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Consider the production function Q = 3K4L4

a. If both K and L are increased by one percent, by what percentage will output increase?  

b. What does the answer to (a) say about returns to scale?

c. What does the answers to (a) and (b) say about the relationship between plant size and long-run average cost?  

d. What is the amount of Q if K = 2 and L = 3?

Reference no: EM132457019

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