1.Suppose that Frank is considering giving Mike eight paper back books in exchange for 2
CDs. Explain the conditions under which this trade would be mutually beneficial. Also
explain the conditions under which Frank and Mike won't make the trade.
2.Consider the production function Q = F(L,K) = 5L2K2. Does this technology have
increasing, decreasing or constant returns to scale.
Hi, Here is the file you requested. Please let me know if you have any questions, I will... View the full answer