Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or

Question:

Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.

a. Q 5 75L0.25K0.75

b. Q 5 75A0.15B0.40C0.45

c. Q 5 75L0.60K0.70

d. Q 5 100 1 50L 1 50K

e. Q 5 50L 1 50K 1 50LK

f. Q 5 50L2 1 50K2 g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: