The production function of the form $Y = K ^ { 1 / 2 } L ^ { 1 / 2 }$
exhibits constant returns to scale.

Name: The production function of the form $Y = K ^ { 1 / 2 } L ^ { 1 / 2 }$ exhibits constant returns to scale.
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Question

The production function of the form $Y = K ^ { 1 / 2 } L ^ { 1 / 2 }$ 
exhibits constant returns to scale.

Quizplus · Accepted Answer

The production function $Y = K^{1/2} L^{1/2}$ exhibits constant returns to scale because if both inputs $K$ and $L$ are scaled by a factor $t$, the output $Y$ is also scaled by $t$, i.e., $ (tK)^{1/2} (tL)^{1/2} = t(K^{1/2} L^{1/2}) $.

The Production Function of the Form Y=K1/2L1/2Y = K ^ { 1 / 2 } L ^ { 1 / 2 }Y=K1/2L1/2

The Production Function of the Form $Y = K ^ { 1 / 2 } L ^ { 1 / 2 }$