Production function exhibit decreasing and increasing

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Reference no: EM131101617

Suppose output is produced according to the following Cobb-Douglas production function q = K0.8L0.5. a. (4 pts) If K = 1 and L = 4, what level of output is produced? If K = 3 and L = 12, what level of output is produced? b. (6 pts) Does this production function exhibit decreasing, increasing, or constant returns to scale? Explain.

Reference no: EM131101617

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