Leann's Telecommunication Firm Production Function Is Given by Where

question 14

Essay

Leann's Telecommunication firm production function is given by 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:

Percentage

A portion or fraction of a whole, typically represented as a number out of 100.

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A degenerative brain disease that leads to progressive memory loss, cognitive decline, and personality changes.

Phase

A distinct period or stage in the process of change or development within a larger cycle or sequence.

24-Hour Assistance

A service or support system available at all times, typically meant to provide help or care round-the-clock.