Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale? The production function q=L+K O A. exhibits increasing

 

Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale? The production function q=L+K O A. exhibits increasing returns to scale if L and K are greater than one. OB. exhibits decreasing returns to scale if L and Kare less than one. C. always exhibits constant returms to scale. D. always exhibits increasing returns to scale. OE. always exhibits decreasing returns to scale. The production function q=Lkb O A. always exhibits increasing returns to scale. B. always exhibits decreasing returns to scale. C. exhibits increasing returms to scale if a + b>1 and decreasing returns to scale if a +b 1 and increasing returns to scale if a +b 0 and decreasing returns to scale if a +b 1 and decreasing returns to scale if a +b 1 and increasing returns to scale if a +b 0 and constant retums to scale if a+b=0.

Step by Step Solution

3.45 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Document Format ( 2 attachments)

PDF file Icon
63639f79007b8_238591.pdf

180 KBs PDF File

Word file Icon
63639f79007b8_238591.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Theory and Applications with Calculus

Authors: Jeffrey M. Perloff

3rd edition

133019934, 978-0133019933

More Books

Students also viewed these Economics questions

Question

Find the derivative using the definition. f(t) || 1 2t + 1

Answered: 1 week ago