You've Been Asked by Your Manager to Choose Between the Following

question 97

Essay

You've been asked by your manager to choose between the following three production functions based on returns to scale:
Q = 10K²L¹
Q = 10K^0.5L^0.5
Q = 10K^0.25L^0.5
She would like you to choose the one that exhibits increasing returns to scale and to provide evidence to support your decision.

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Definitions:

Job Market Signals

Indicators or attributes used by employers to infer the potential productivity or suitability of job candidates.

Dressing Well

The act of choosing and wearing clothes that are considered socially and contextually appropriate and aesthetically pleasing.

Interviews

A formal conversation between two or more people, where questions are asked by the interviewer to obtain information from the interviewee.

Marginal Cost

The cost of producing one additional unit of a good or service, computed by dividing the change in total cost by the change in quantity produced.