The production function Q = 50K^0.25L^0.75 exhibits A) increasing, then diminishing returns to scale. B) increasing returns to scale. C) decreasing returns to scale. D) constant returns to scale. E) negative returns to scale.

Question

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The production function Q = 50K^0.25L^0.75 has exponents that sum to 1 (0.25 + 0.75 = 1), indicating constant returns to scale.

The Production Function Q = 50K0.25L0.75 Exhibits

The Production Function Q = 50K^0.25L^0.75 Exhibits