Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale. A. Q =

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Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale.
A. Q = 0.5X + 2Y + 40Z
B. Q = 3L + 10K + 500
C. Q = 4A + 6B + 8AB
D. Q = 7L^2 + 5LK + 2K^2
E. Q = 10L^0.5 K^0.3

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Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

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Question Posted: Apr 30, 2013 09:57 AM

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Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale. A. Q =

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A Initially let X Y Z 100 so output is Q 05100 2100 40100 4250 Increasing all inputs by an arbitrary ...View the full answer

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