The production function of Qalitec Signs and Display Limited is given by Q = 100L0.5 KO.5, where Q is the quantity of si

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The Production Function Of Qalitec Signs And Display Limited Is Given By Q 100l0 5 Ko 5 Where Q Is The Quantity Of Si 1 (27.83 KiB) Viewed 38 times

The production function of Qalitec Signs and Display Limited is given by Q = 100L0.5 KO.5, where Q is the quantity of signs and LCD displays produced per annum, L is the labour input and K is the capital input. i. Does the production function of Qalitec exhibit diminishing marginal returns? ii. Does the production function exhibit decreasing returns to scale? iii. Briefly distinguish between internal economies of scale and external economies of scale. iv. Briefly explain the main factors that account for production economies of scale.