Suppose the production function for good q is given by $q = 3 k + 2 l$ where k and l are capital and labor inputs.Consider three statements about this function:
I.The function exhibits constant returns to scale.
II.The function exhibits diminishing marginal productivities to all inputs.
III.The function has a constant rate of technical substitution.
Which of these statements is true?
A)All of them.
B)None of them.
C)I and II but not III.
D)I and III but not II.
E)only I.

Question

Suppose the production function for good q is given by $q = 3 k + 2 l$ where k and l are capital and labor inputs.Consider three statements about this function: 
I.The function exhibits constant returns to scale.
II.The function exhibits diminishing marginal productivities to all inputs.
III.The function has a constant rate of technical substitution.
Which of these statements is true?
A)All of them.
B)None of them.
C)I and II but not III.
D)I and III but not II.
E)only I.

Quizplus · Accepted Answer

The function exhibits constant returns to scale (doubling inputs doubles output) and has a constant rate of technical substitution (linear function), but does not exhibit diminishing marginal productivities (marginal products are constant).

Suppose the Production Function for Good Q Is Given By q