Leann's Telecommunication Firm Production Function Is Given by Y(K, L)

question 108

Essay

Leann's Telecommunication firm production function is given by y(K, L) = 200
, where K is the number of internet servers and L is the number of labor hours she uses. Does this production function exhibit increasing, constant or decreasing returns to scale? Holding the number of internet servers constant at 8, is the marginal product of labor increasing, constant or decreasing as more labor is used?

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Definitions:

Face-to-face interaction

Direct communication where individuals engage in conversation or non-verbal cues in the same physical space, fostering personal connections and understanding.

Internet

A global network that connects computers worldwide, providing access to information and communication platforms.

Culturally imperialistic

Practices or policies by which a dominant culture extends its influence and norms over other cultures, often diminishing or supplanting local cultures and identities.

United States

A federal republic consisting of 50 states, a federal district, and several territories, characterized by a diverse landscape and population.