Economics DG Khan Cement Company is one of famous cement factories of Pakistan. This company has a sustainable profit level over a number of past years. It is also a public quoted company and its shares are quoted on Karachi, Lahore and Islamabad Stock Exchanges. Suppose it has a production capacity of 50,200 Tones. In order to utilize all its production capacity, management has estimated the following production function: 7(5,2) Q=0.8L04K07E06 Where: Q = Output L=Labor input in worker hours K = Capital input in machine hours E= Energy input a) Estimate the effect on output of a 1% decline in energy input due to energy crisis of Pakistan (holding K and L constant). b) Estimate the returns to scale for this production system. [8:03 am, 08/02/2021] abeera liaqat: Pasha and Jims Inc. is exporter of gents and children’s readymade garments
