Assume quantity of labor-technological change are constant

Reference no: EM13691077

Given the production function:

O = AL^60 K^70

A) What is the increase in output if the quantity of capital rises 30% (Assume the quantity of labor and technological change are constant)

B) Is this industry exhibiting increasing, constant, or decreasing returns to scale? How do you know?

Reference no: EM13691077

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