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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