Consider a production function in two factors q = f(k, l) that is CRS, where K is a fixed factor. How would the production function be affected by an increase in the amount of K to a new fixed level? a. The production function would be unaffected b. The production function would shift vertically downwards c. The production function would shift vertically upward d. The production function would disappear
Added by Andre H.
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This is because CRS implies that doubling the inputs will double the output, regardless of the level of the fixed factor. Show more…
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