For each of the following production functions, determine if the technology exhibits increasing, decreasing, or constant returns to scale.
Problem Set 1. Suppose that the hourly output of chili at a barbecue (q, measured in pounds) is characterized byq = 20√KLwhere K is the number of large pots used each hour and L is the number of worker hours employed.a. Graph the q = 2000 pounds per hour isoquant.b. The point K = 100, … Read more