The production function given by Q = 10(0.7K² + 0.3L²)^0.5 has _____ returns to scale. A) constant B) instant C) increasing D) decreasing

Name: The production function given by Q = 10(0.7K 2 + 0.3L 2 ) 0.5 has _____ returns to scale. A) constant B) instant C) increasing D) decreasing
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Question

Quizplus · Accepted Answer

The production function is homogeneous of degree 1, as the sum of the exponents of K and L in the production function is 1 (0.5 from K and 0.5 from L), indicating constant returns to scale.

The Production Function Given by Q = 10(0