Question

1-4. The production function q = f(L, K) = 3L^1/3K^1/3 has (1) constant returns to scale (2) increasing returns to scale (3) decreasing returns to scale (4) both (3) and homogeneous (5) none of the above

          1-4. The production function q = f(L, K) = 3L^1/3K^1/3 has
(1) constant returns to scale
(2) increasing returns to scale
(3) decreasing returns to scale
(4) both (3) and homogeneous
(5) none of the above

Added by Joshua P.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Sri K

11/01/2022

Step 1

It refers to how the output changes if we increase all inputs by the same proportion. - If output increases by the same proportion as the inputs, we have constant returns to scale. - If output increases by more than the proportion of the inputs, we have Show more…

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The production function q = f(L,K) = 3L^(1/3)K^(1/3) has (1) constant returns to scale (2) increasing returns to scale (3) decreasing returns to scale (4) both (3) and homogeneous (5) none of the above