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Suppose the Firm's Production Function Is Q = 2KL, Where

Question 138

Essay

Suppose the firm's production function is Q = 2KL, where Q is units of output, K is units of capital (which are fixed at 2), and L is units of labor.

a. Graph the firm's short-run production function.
b. Graph the firm's APL and MPL functions.
c. Does this firm have diminishing marginal returns? Explain your answer.

Correct Answer:

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a. The firm's production function is Q =...

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