Given the production function is: q = 4L +4K, where L is the quantity of labor,...

 

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Given the production function is: q = 4L² +4K, where L is the quantity of labor, K is the quantity of capital and q is the quantity of output. This production function exhibits: a. Constant returns to scale, constant returns to capital and constant returns to labor. b. Increasing returns to scale, decreasing returns to capital and constant returns to labor. c. Decreasing returns to scale, decreasing returns to capital and constant returns to labor. d. Constant returns to scale, constant returns to capital and decreasing returns to labor. e. Decreasing returns to scale, constant returns to capital and decreasing returns to labor. Given the production function is: q = 4L² +4K, where L is the quantity of labor, K is the quantity of capital and q is the quantity of output. This production function exhibits: a. Constant returns to scale, constant returns to capital and constant returns to labor. b. Increasing returns to scale, decreasing returns to capital and constant returns to labor. c. Decreasing returns to scale, decreasing returns to capital and constant returns to labor. d. Constant returns to scale, constant returns to capital and decreasing returns to labor. e. Decreasing returns to scale, constant returns to capital and decreasing returns to labor.

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The correct answer is option b Given q 4L12 K Assume L ... View the full answer