Suppose the Production Function for T-Shirts Can Be Represented as Q

question 75

Essay

Suppose the production function for T-shirts can be represented as q = L⁰.²⁵ K⁰.⁷⁵.Show that the production function has constant returns to scale.

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Definitions:

Available-For-Sale

A classification for financial assets indicating that they can be sold in the future but are not held for active trading or intended to be held to maturity.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, often referred to as the bottom line.

Trading Securities

Trading securities are a form of investments that a company plans to buy and sell over a short period of time with the intention of profiting from the market movements.

Realized Gain

The profit made from the sale of an asset, recognized when the asset is actually sold and the transaction is complete.