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Consider the following production function for Triangle Transportation Authority in North Carolina Q=10000L 0.25 F 0.45 K 0.35 WhereQis the output in billions of bus

Consider the following production function for Triangle Transportation Authority in North Carolina

Q=10000L^0.25F^0.45K^0.35

WhereQis the output in billions of bus miles,Lis the amount of labor employed,Fis the amount of fuel consumed andKis capital input.

(i)What is the degree of homogeneity of the production function?

(ii)Does TTA's production function exhibits increasing, constant or decreasing returns to scale? Explain your answer

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