Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0. For what range of values of a does this production function exhibit increasing returns to scale? For any value of a < 1 O For any value of a None of the above are correct. O For a = 0 O For any value of a > 1
Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0. For what range of values of a does this production function exhibit increasing returns to scale? For any value of a < 1 O For any value of a None of the above are correct. O For a = 0 O For any value of a > 1
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.9P
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![Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0.
For what range of values of a does this production function exhibit increasing
returns to scale?
O For any value of a < 1
O For any value of a
O None of the above are correct.
For a = 0
O For any value of a > 1](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F016bbe54-b74b-401c-aebe-c9e8a78fd8e5%2F12e30c2f-ad9b-4cba-b73c-2518765f380a%2Fwr8tdu_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0.
For what range of values of a does this production function exhibit increasing
returns to scale?
O For any value of a < 1
O For any value of a
O None of the above are correct.
For a = 0
O For any value of a > 1
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