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Unformatted text preview: increasing returns to scale and at the same time, diminishing returns to BOTH factors of production. 3) Given a common wage rate for labor, w, and rental rate for kapital, r, how would the long run total cost function for the production function: x = K + L compare with the long run total cost function for the production function z = (K + L) 2 ? Find and graph them both. Econ 313.1 - Wissink - Fall 2004 PS#4 - XtraQ DUE: Friday Oct 22 at the start of class....
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- Fall '06