3. Suppose the production function is Q=L1/3 K1/3 where L is the amount of labor and...

 

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3. Suppose the production function is Q=L1/3 K1/3 where L is the amount of labor and K is the amount of capital. a. Does the function exhibit increasing, constant or decreasing returns to scale? b. Name one of the reasons for the type of returns to scale you have found in part (a) and explain. C. What is the elasticity of substitution for this production function? 3. Suppose the production function is Q=L1/3 K1/3 where L is the amount of labor and K is the amount of capital. a. Does the function exhibit increasing, constant or decreasing returns to scale? b. Name one of the reasons for the type of returns to scale you have found in part (a) and explain. C. What is the elasticity of substitution for this production function?