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The production function for hockey sticks (H) is given by H = 3K0.4L0.6. The production function for basketballs (B) is given by B = K0.4+
The production function for hockey sticks (H) is given by H = 3K0.4L0.6. The production function for basketballs (B) is given by B = K0.4+ L, where K = capital units and L = labor units.
Group of answer choices
a. For B, both L and K have decreasing marginal productivity.
b. For B, K has decreasing marginal productivity whereas L has constant marginal productivity.
c. For H, both L and K have constant marginal productivity.
d. Both H and B exhibit decreasing returns to scale.
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