Suppose the production function is Y = A x F(L, K). If all inputs are doubled and output also doubles, then there are ________ returns to scale and ____________returns of L

Question

Quizplus · Accepted Answer

The production function exhibits constant returns to scale when doubling all inputs leads to a doubling of output. The question does not provide enough information to determine the returns of L (labor), so the second part cannot be directly answered from the given information. However, the correct format for the answer based on the provided options and typical interpretation would be constant returns to scale, as indicated by the doubling of inputs and outputs.

Suppose the Production Function Is Y = a X F(L