Answered: 7. Which of the following production…

7. Which of the following production models exhibit(s) constant returns to scale? A. Y = K + L B. Y = K - L C. Both A and B D. Neither A nor B

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.4: Costs Of Production: Total, Average, Marginal

Problem 3ST

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

Question

7. Which of the following production models exhibit(s) constant returns to scale?
A. Y = K + L
B. Y = K - L
C. Both A and B
D. Neither A nor B

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