Question: 2 . Using the concept of the homogeneous function determine if the following production function exhibits increasing, decreasing or constant returns to scale: ( i

2. Using the concept of the homogeneous function determine if the following production function exhibits increasing, decreasing or constant returns to scale:
(i) Q=L+K
(ii) Q=LK
(iii) Q=10Min(L,K)
(iv) Q=2Max(L,K)
(v) Q=L^(1/2)*K^(1/4)
(vi) Q =(sqrt(L)+ sqrt(K))^2

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!