Macroeconomics
1. Suppose that you have the following production function:?? = 100??1/3??2/3Where k represents the units of capital employed at production, L is the number of labor hoursemployed for total production. The wage rate equals to $18 per hour. The cost of capital equals$2,000 per unit.a) What are the returns of scale for this production function? Prove itb) You are currently employing 100 hours of...
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