Question
1.Consider the following production function: Y = F(K,L)=A(2K+3L) Does this production function exhibit constant returns to scale? (Hint: Replace K and L by 2K and
1.Consider the following production function:
Y = F(K,L)=A(2K+3L)
Does this production function exhibit constant returns to scale? (Hint: Replace K and L by 2K and 2L, respectively, and check if F(2K,2L) = 2F(K,L).
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Environmental Economics and Management Theory, Policy and Applications
Authors: Scott J. Callan, Janet M. Thomas
6th edition
1111826673, 1111826676, 1439080634, 1439080631, 9781285528540 , 978-1111826673
