Posted by saya on .
hi, i need some help with my econ homework.
i know what the law is, basically that more isn't always better. i just need to know how to tell if it applies to a labor equation.
my problem goes like this. F(K,L) = K + 10L, write expressions for marginal product of labor and capital, does it exhibit diminishing marginal returns, and whether its inc/dec/con returns to scale.
i calculated MPL to be 10 & MPK to be 1 from partial derivatives and now i'm not sure where to go. i get the basic concept but i just don't know how to apply that to the equation. and also, when you explain the returns to scale please elaborate as there are other parts to the problem. thank you so much!