For the production function Q = L2 +0.5K2, returns to scale:is constantCan be increasing, decreasing, or constant depending on the values of L and K.is increasingO is decreasing

Return to Scale:Return to scale refers to the effect on output or production when all inputs are…

Answered: For the production function Q = L²…

For the production function Q = L² +0.5K², returns to scale: O is constant O Can be increasing, decreasing, or constant depending on the values of L and K. O is increasing O is decreasing

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

For the production function Q = L2 +0.5K2, returns to scale:
is constant
Can be increasing, decreasing, or constant depending on the values of L and K.
is increasing
O is decreasing

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