View the step-by-step solution to:

a firm sells its output in a perfectly competitive market at a fixed price of $10 per unit.

a firm sells its output in a perfectly competitive market at a fixed price of $10 per unit. it buys tow imputs L and K at prices of $15 per unit and $50 per unit respectively and has following production function: Q=100L^0.3K^0.5.
a. Use calculus to show that the production function exhibits diminishing returns to labor. interpret your answer.
b. Now show that if the same production function also has diminishing returns to capital.
c. Are the return to captial and labor the same? brefly explain your answer.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question