Suppose that corns are produced according to the production function q = 100K+ 50L, where q represents pounds of corns produced per hour, K is the number of acres of land devoted to corn production, and L represents the number of workers hired each hour. 1. Does this production function exhibit increasing, constant, or decreasing returns to scale? 2. Give one reason why this production function is probably not a very reasonable one.

Suppose that corns are produced according to the production function q = 100K+ 50L, where q represents pounds of corns produced per hour, K is the number of acres of land devoted to corn production, and L represents the number of workers hired each hour. 1. Does this production function exhibit increasing, constant, or decreasing returns to scale? 2. Give one reason why this production function is probably not a very reasonable one.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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