Question #28199

2. An industry can be characterized by the following production function:

Q = 2.5L^.60 C^.40

(a) What is the algebraic expression for the marginal productivity of labor?

(b) What is the algebraic expression for the average productivity of labor?

(c) How would you characterize the returns-to-scale in the industry?

Q = 2.5L^.60 C^.40

(a) What is the algebraic expression for the marginal productivity of labor?

(b) What is the algebraic expression for the average productivity of labor?

(c) How would you characterize the returns-to-scale in the industry?

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