If production is given by Q = K^sL^b,(a + b

Question

If production is given by Q = K^sL^b,(a + b < 1)doubling both inputs A)more than doubles output. B)exactly doubles output. C)increases output but does not double it. D)leaves output unchanged.

Quizplus · Accepted Answer

Doubling both inputs in the production function Q = KS^1U^1P^1sS^1S^1P^0LS^1U^1P^1bS^1S^1P^0, where (a + b < 1), increases output due to the principle of diminishing returns, as indicated by the sum of a and b being less than 1. This means the production function exhibits increasing returns to scale but not enough to double the output, hence output increases but does not double.

If Production Is Given by Q = KsLb,(a + B

If Production Is Given by Q = K^sL^b,(a + B