Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale? a.

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Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale?

a. q = L + K, a linear production function,

b. q = ALa Kb, a general Cobb-Douglas production function,

c. q = L + La Kb + K,

d. q = (aLρ + [1 - a]Kρ)

d/ρ, a CES production function. (See Solved Problem 6.5) M

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Microeconomics Theory And Applications With Calculus

ISBN: 9780133019933

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Authors: Jeffrey M. Perloff

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Question Posted: Nov 15, 2024 02:00 AM

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Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale? a.

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Microeconomics Theory And Applications With Calculus

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