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a firm produces its output (y) using three inputs: capital (K), labour (L) and materials (M)....

a firm produces its output (y) using three inputs: capital (K), labour (L) and materials (M). Its production function is y = K0.2L0.5M0.3.

For which input(s) does production exhibit a diminishing marginal product?

Select one or more:

a. capital

b. labour

c. materials

The firm’s production is characterised by

Select one:

a. decreasing returns to scale.

b. constant returns to scale.

c. increasing returns to scale.

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