What are Returns to Scale in relation to the production function? How could you go about evaluating the Returns to Scale for a particular production process? How could you determine if it is Increasing Returns to Scale, Decreasing Returns to Scale, or Constant Returns to Scale?
a. What is the Returns to Scale for the production function Q = 12L + 15K, and explain how you determined it?
b. What is the Returns to Scale for the production function Q = 27L^2K, and explain how you determined it?