If there are constant returns to scale, how is the production function written?
A)xY = 2xAF(L, K, H, N)
B)Y/L = A F(xL, xK, xH, xN)
C)Y/L = A F( 1, K/L, H/L, N/L)
D)L = AF(Y, K, H, N)

Question

Quizplus · Accepted Answer

Constant returns to scale imply that if all inputs are scaled by a factor x, output is also scaled by x. The production function can be expressed in per-worker terms, showing output per worker as a function of capital, human capital, and natural resources per worker.

If There Are Constant Returns to Scale, How Is the Production