Question: Considering the following production function: Q K L , K , 3 K L , where K denotes the amount o f capital used for
Considering the following production function: where denotes the amount capital used for production,
and the amount labour used. Which the sentences below best describes the production function?
The production function exhibits constant returns scale.
cannot tell with the information available.
The production function exhibits decreasing returns scale.
The production function exhibits increasing returns scale.
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