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Find which of the following production functions exhibit constant, increasing or decreasing returns to scale. In each case y is output and K and L
Find which of the following production functions exhibit constant, increasing or decreasing returns to scale. In each case y is output and K and L are inputs. (1) y =2K0.4L0.8. (2) y = 3K1/3 L1/7 +4K1/3 L1/7 , (3) y = K1/4 L3/4 + K3/4 L1/4 .
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