A Leontief production function is given by f(k,l)=min{k/a,l/b). Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale? A perfect substitutes production function is given by f(k,l)=al+bk. Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale?

A Leontief production function is given by f(k,l)=min{k/a,l/b). Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale? A perfect substitutes production function is given by f(k,l)=al+bk. Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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Question

A Leontief production function is given by f(k,l)=min{k/a,l/b). Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale?

A perfect substitutes production function is given by f(k,l)=al+bk. Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale?

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