Question
For each of the following production functions, determine whether returns to scale are decreasing, constant, or increasing (show your computations). a. Q = 3K +
For each of the following production functions, determine whether returns to scale are decreasing, constant, or increasing (show your computations).
a.Q = 3K + 2L + KL
b.Q = 20K.7L.5
The multiplicative production function in part b is known as:________________________production function.
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
8th Canadian Edition
134646355, 9780134842615 , 978-0134646350
