Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 18

Suppose that artichokes are produced according to the production function q = 100K + 50L, where q represents pounds of artichokes produced per hour, K is the number of acres of land devoted to artichoke production, and L represents the number of workers hired each hour to pick artichokes.
1. Does this production function exhibit increasing, constant, or decreasing returns to scale?
2. What does the form of this production function assume about the substitutability of L for K?
3. Give one reason why this production function is probably not a very reasonable one.