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QUESTION
The QuickBuild Company builds houses (Q) in the Lower Mainland. It combines capital (K) and labour (L) in its production function in the following...
The QuickBuild Company builds houses (Q) in the Lower Mainland. It combines capital (K) and labour (L) in its production function in the following way:
Q(K,L) = K1/3L1/3 Labour cost: w = $8 Capital rental cost: v = $8
- 1A. What do we call this form of production function?
- 1B. According to its production function, what returns to scale does QuickBuild enjoy? Demonstrate
