There are three factors of production, capital, K skilled labour L; and unskilled labour Ly Which of the following production functions exhibits constant returns to scale in the production inputs K, Lg and Ly? Oa. ab Y=Ka+6{ab+c) 4ab 2(ab+3c) a+2(ab+3c)+4 ab L.+2(3ab+c)+4cL ObAll of these answers are correct. ac Y= K+b+bc L, +b+bcL+b+be Od. blb-c) b>c (1- a) L 1-a, 0

There are three factors of production, capital, K skilled labour L; and unskilled labour Ly Which of the following production functions exhibits constant returns to scale in the production inputs K, Lg and Ly? Oa. ab Y=Ka+6{ab+c) 4ab 2(ab+3c) a+2(ab+3c)+4 ab L.+2(3ab+c)+4cL ObAll of these answers are correct. ac Y= K+b+bc L, +b+bcL+b+be Od. blb-c) b>c (1- a) L 1-a, 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2 points
There are three factors of production, capital, K skilled labour Le and unskilled labour Lu Which of the following production functions
exhibits constant returns to scale in the production inputs K, Ls and Lu?
a.
ab
4 ab
2(ab+3e)
Y= Ka+6lab+c) La+2(3ab+c)+4c L a+2(ab+3c)+4ab
O b. All of these answers are correct.
ac
Y= Ka+b+bc L. a+b+bc L
a+b+bc
O d.
blb-c)
b-e?
Y=K++b?-
b>c
1-a
a(1-a)
1-a
Y= K1-a'L, 1+
0<a<1

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