>>Question 3Which of the following production technology exhibits constant returns to scale?I. f(K, L)=K0.25 L0.75II. f(K, L) = K0.75 0.75III. f(K, L) = K0.25 0.25Only (i)Only (ii)Only (iii)All of them.Question 4Which of the following production technology exhibits increasing returns to scale?I. f(K, L) = K0.25 L0.75II. f(K, L) = K0.75 0.75III. f(K, L) = K0.25 0.25Only (i)Only (ii)Only (iii)O All of them.

The constant return to scale states that increasing capital (K) and labor (L) by X% will increase…

Answered: Which of the following production…

Which of the following production technology exhibits constant returns to scale? I. f(K, L) = K0.25 0.75 II. f(K, L) = K0.75 0.75 III. f(K, L) = K0.25 0.25

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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