Question: An economy has the production function Y = K + (K+L) 2 where Y = output, K = capital, and L = labor. This production

An economy has the production function

Y = K + (K+L)2

whereY= output,K= capital, andL= labor. This production function has:

A. Constant returns to scale and a diminishing marginal product of capital

B. Constant returns to scale and a constant marginal product of capital

C. Decreasing returns to scale and a diminishing marginal product of capital

D. Increasing returns to scale and a diminishing marginal product of capital

E. Constant returns to scale and an increasing marginal product of capital

F. None of the above

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