Answered: Does the production function 50 q =…

Does the production function 50 q = 1000L - exhibit increasing, decreasing, or constant returns to scale? This production function exhibits V returns to scale.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Does the production function
50
q = 1000L -
K
exhibit increasing, decreasing, or constant returns to scale?
This production function exhibits
returns to scale.

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