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?

Question

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?

Quizplus · Accepted Answer

The Answer of 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?

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