Production Function: Constant Returns to Scale
Review
Suppose when L=50 and K=100, output Y=$1,000. How much will Ynew be if this company triples both inputs of production, i.e., Lnew=150
and Knew=300?
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a Ynew=$1,000.
b Ynew=$1,300.
C Ynew=$2,000.
d Ynew=$3,000.