In the above figure, if this firm produces output level Q2, it has average total costs of

For each of the following functions, describe returns to scale

a. Q = K + L b. Q = K1/2L3/4 c. Q = K2L

A limited military draft is likely to be inefficient because

a. it transfers wealth from those who are drafted to those who benefit from the army's services. b. the wage rate paid to army personnel is set by the government, not by the market. c. more people will be drafted than would have joined a volunteer army. d. there is no guarantee that young adults with the lowest opportunity costs will be drafted.