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PaulKet PaulKet
wrote...
Posts: 488
Rep: 6 0
6 years ago
Show that increasing returns to scale can co-exist with diminishing marginal productivity. To do so, provide an example of a production function with IRTS and diminishing marginal returns.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
Read 75 times
2 Replies
The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.

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Replies
wrote...
6 years ago
A number of production functions work. A general Cobb-Douglas production function with
a + b >1 while a < 1 and b < 1.
PaulKet Author
wrote...
6 years ago
Smiling Face with Open Mouth Yay, got perfect on my quiz
The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
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