Does the production function exhibits increasing returns to
Course:- Microeconomics
Reference No.:- EM13337809

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1. A farmer uses M units of machinery and L hours of labor to produce C tons of corn.

A) Suppose the production function is C = L(0.5) x M(0.75), does the production function exhibits increasing returns to scale, decreasing returns to scale or constant returns to scale? Explain your answer.

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