Show that increasing returns to scale can co-exist with diminishing marginal productivity. To do so, provide an example of a production function with IRTS and diminishing marginal returns
What will be an ideal response?
A number of production functions work. A general Cobb-Douglas production function with
a + b >1 while a < 1 and b < 1.
Economics
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The required return on equity for an individual stock includes which of the following?
A) systemic risk B) idiosyncratic risk C) risk-free interest rate D) all of the above
Economics
Holding other things constant, decreases in the price level in the US will
a. Cause the dollar to appreciate b. Cause the dollar to depreciate c. Cause no change in dollar value d. None of the above
Economics