we have assumed tha the production function simultaneously has constant returns to scale and diminishing marginal products. What do each of these terms mean? Is it a contradiction for a production function to feature constant returns to scale and diminishing marginal products? Why or why not?

we have assumed tha the production function simultaneously has constant returns to scale and diminishing marginal products. What do each of these terms mean? Is it a contradiction for a production function to feature constant returns to scale and diminishing marginal products? Why or why not?

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

1. We have assumed that the production function simultaneously has constant
returns to scale and diminishing marginal products. What do each of these terms
mean? Is it a contradiction for a production function to feature constant returns to
scale and diminishing marginal products? Why or why not?

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