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Suppose a Firm's Technology Is Represented by the Function Q

question 59

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Suppose a firm's technology is represented by the function Q = F(L,K)= 5L.25K.75.Does this firm experience economies of scale,diseconomies of scale or neither?


Definitions:

University Laboratories

Specialized facilities within universities where research and experiments are conducted across various disciplines.

Commercial Applicability

The potential for a product, service, or innovation to be successfully marketed and sold in a commercial environment.

Entrepreneurs

People who start, oversee, and bear the risks associated with a business or venture.

Innovative Firms

Companies that specialize in creating new products or services through research, development, and technology.

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