Problem 9: Under what conditions do the following production functions exhibit constant, increasing, and decreasing returns to scale? (a) (b) 3 q=L+ K. q=AL KB. q = L + LºK³ + K. (this a linear production function). (this is a Cobb-Douglas production function)
Problem 9: Under what conditions do the following production functions exhibit constant, increasing, and decreasing returns to scale? (a) (b) 3 q=L+ K. q=AL KB. q = L + LºK³ + K. (this a linear production function). (this is a Cobb-Douglas production function)
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![Problem 9:
Under what conditions do the following production functions exhibit constant, increasing, and decreasing
returns to scale?
(a)
(b)
3
q=L+ K.
q=AL KB.
q = L + LºK³ + K.
(this a linear production function).
(this is a Cobb-Douglas production function)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b9f897e-fcc9-4696-a46f-1dec3ae16dbe%2Fb1e8780f-504f-4701-add8-590a7da698f8%2Fhf3o1a_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 9:
Under what conditions do the following production functions exhibit constant, increasing, and decreasing
returns to scale?
(a)
(b)
3
q=L+ K.
q=AL KB.
q = L + LºK³ + K.
(this a linear production function).
(this is a Cobb-Douglas production function)
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