2. Which of the following production functions with inputs K, L, and H exhibits Constant Returns to Scale (CRS)? (Assume Ā > 0 is a constant) a) Y = AK/2L1/2 b) Y = ĀK/² L!/3H/4 c) Y = ĀK/2 – L/H d) Y = ĀKL/² H/2

2. Which of the following production functions with inputs K, L, and H exhibits Constant Returns to Scale (CRS)? (Assume Ā > 0 is a constant) a) Y = AK/2L1/2 b) Y = ĀK/² L!/3H/4 c) Y = ĀK/2 – L/H d) Y = ĀKL/² H/2

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.3: Production

Problem 3ST

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Question

2. Which of the following production functions with inputs K, L, and H exhibits Constant
Returns to Scale (CRS)? (Assume Ā > 0 is a constant)
a) Y = AK/2L/2
b) Y = ĀK/2L/3H/4
c) Y = ĀK/2 – L/H
d) Y = ĀKL/2H\/2

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