Give an example of a production function that exhibits increasing returns to scale and...
Question:
Give an example of a production function that exhibits increasing returns to scale and diminishing marginal product of labor at the same time. Prove that the function has these properties.
Production Function:
Production Function shows the relationship between the inputs used in the production with the outputs of the production. The production function is a functional mathematical relationship between the factors and the output of production.
Answer and Explanation: 1
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View this answerOne example of a production function which shows increasing returns to scale and diminishing marginal product of labor will be :
Y = 10 * L^0.5...
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Returns to Scale in Economics: Definition & Examples
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Chapter 3 / Lesson 71
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Understand the meaning of returns to scale in economics. Learn about increasing returns to scale, constant returns to scale and decreasing returns to scale.
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