Question: What does the production function given by Y = K 0 . 3 L 0 . 7 imply about the returns to scale? increasing returns

What does the production function given by Y = K0.3 L0.7 imply about the returns to scale?
increasing returns to scale
constant returns to scale
decreasing returns to scale
depreciating returns to scale

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!