The given production function exhibits which of the following?
A) constant returns to scale - for every 100% increase in input, there is a 100% increase in output.
B) decreasing returns to scale - for every 100% increase in input, there is a .675% increase in output.
C) decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output
D) increasing returns to scale - for every 100% increase in input, there is a 675% increase in output
E) increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.

Question

The given production function exhibits which of the following? 
A) constant returns to scale - for every 100% increase in input, there is a 100% increase in output. 
B) decreasing returns to scale - for every 100% increase in input, there is a .675% increase in output. 
C) decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output 
D) increasing returns to scale - for every 100% increase in input, there is a 675% increase in output 
E) increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.

Quizplus · Accepted Answer

The Answer of The given production function exhibits which of the following? 
A) constant returns to scale - for every 100% increase in input, there is a 100% increase in output. 
B) decreasing returns to scale - for every 100% increase in input, there is a .675% increase in output. 
C) decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output 
D) increasing returns to scale - for every 100% increase in input, there is a 675% increase in output 
E) increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.

The Given Production Function Exhibits Which of the Following