Returns to scale in production: Do the following production functions exhibitincreasing, constant, or decreasing returns to scale in K and L? (Assume Ais some fxed positive number.)(a) Y = K1/2L1/2(b) Y = K2/3L2/3(c) Y = K1/3L1/2(d) Y = K + L(e) Y = K + K1/3L1/3 (f ) Y = K 1/3L2/3 + A (g) Y = K 1/3L2/3 − A
Returns to scale in production: Do the following production functions exhibitincreasing, constant, or decreasing returns to scale in K and L? (Assume Ais some fxed positive number.)(a) Y = K1/2L1/2(b) Y = K2/3L2/3(c) Y = K1/3L1/2(d) Y = K + L(e) Y = K + K1/3L1/3 (f ) Y = K 1/3L2/3 + A (g) Y = K 1/3L2/3 − A
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Returns to scale in production: Do the following production functions exhibit
increasing, constant, or decreasing returns to scale in K and L? (Assume A
is some fxed positive number.)
(a) Y = K
1/2L1/2
(b) Y = K
2/3L2/3
(c) Y = K
1/3L1/2
(d) Y = K + L
(e) Y = K + K
1/3L1/3
(f ) Y = K
1/3L2/3 + A
(g) Y = K
1/3L2/3 − A
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