The production function of the form
exhibits constant returns to scale.

Question

The production function of the form  
exhibits constant returns to scale.

Quizplus · Accepted Answer

Constant returns to scale means that if all inputs are multiplied by a constant factor, output also increases by the same constant factor. In other words, doubling all inputs will double output. The production function of the given form does not specify any specific values for the exponents, but as long as they are identical for all inputs, the function exhibits constant returns to scale.

The Production Function of the Form