For the production function Q = 0.7L + K, returns to scale: a. Can be increasing, decreasing, or constant depending on the values of L and K. b. Is decreasing. c. Is increasing. d. Is constant.
For the production function Q = 0.7L + K, returns to scale: a. Can be increasing, decreasing, or constant depending on the values of L and K. b. Is decreasing. c. Is increasing. d. Is constant.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 1.5CE
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For the production function Q = 0.7L + K, returns to scale:
a. Can be increasing, decreasing, or constant depending on the values of L and K.
b. Is decreasing.
c. Is increasing.
d. Is constant.
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