At what level of employment would diminishing returns set
A cost minimizing firm has the following short run production function:
Q=f (L,K)=72L+5L2-0.2L3
a) Briefly explain why this is a short run production function.
b) At what level of employment would diminishing returns set in for the variable input?
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At what level of employment would diminishing returns set in for the variable input?
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