Michael's Dairy farm production function is given by y(K, L) = 2

, where K is the number of machine milkers and L is the amount of labor hours he uses. Does this production function exhibit increasing, constant or decreasing returns to scale? Holding the number of machine milkers constant at 16, is the marginal product of labor increasing, constant or decreasing as more labor is used?

Question

Michael's Dairy farm production function is given by y(K, L) = 2  
  
, where K is the number of machine milkers and L is the amount of labor hours he uses. Does this production function exhibit increasing, constant or decreasing returns to scale? Holding the number of machine milkers constant at 16, is the marginal product of labor increasing, constant or decreasing as more labor is used?

Quizplus · Accepted Answer

The Answer of Michael's Dairy farm production function is given by y(K, L) = 2  
  
, where K is the number of machine milkers and L is the amount of labor hours he uses. Does this production function exhibit increasing, constant or decreasing returns to scale? Holding the number of machine milkers constant at 16, is the marginal product of labor increasing, constant or decreasing as more labor is used?

Michael's Dairy Farm Production Function Is Given by Y(K, L)