Answered: For the production function Q = 4LK,…

For the production function Q = 4LK, returns to scale: is decreasing O Can be increasing, decreasing, or constant depending on the values of Land K. is increasing O is constant

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 27RQ: What is the difference between economies of scale, constant returns to scale, and diseconomies of...

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Question

For the production function Q = 4LK, returns to scale:
O is decreasing
O Can be increasing, decreasing, or constant depending on the values of L and K.
O is increasing
O is constant

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