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A year ago
Provide a graph and an explanation to show that the production function Q = L  K  has diminishing marginal product of labor but has constant returns to scale.
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Microeconomics


Edition: 6th
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A year ago
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See the above figure. The MPL = .5 * L  K  so as the amount of labor increases the MPL falls. The convex shape of the isoquants illustrates the diminishing marginal product of labor. Doubling both capital and labor will result in output doubling.
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