Mathematics homework help
Mathematics homework help. 1. A rm has a Cobb-Douglas production function of Q = K0.25L0.75.(a) Does this production technology exhibit increasing, constant, or decreasing returns to scale?(b) Suppose that the rental rate of capital is r = 1, the wage rate is w = 1, and the rm wants to produce Q = 3. In the long-run, what combination of L and K should they use?(c) Suppose now that the wage rate increases to w = 6. In the long run, what is the new combination of L and K that would be cost-minimizing if the rm wishes to continue producing Q = 3?
Get Your Custom Essay Written From Scratch
We have worked on a similar problem. If you need help click order now button and submit your assignment instructions.
Just from $13/Page
