Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0. For what range of values of a does this production function exhibit increasing returns to scale? For any value of a < 1 O For any value of a None of the above are correct. O For a = 0 O For any value of a > 1

Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0. For what range of values of a does this production function exhibit increasing returns to scale? For any value of a < 1 O For any value of a None of the above are correct. O For a = 0 O For any value of a > 1

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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Question

Suppose that the production function is q=f(L, K) = Lª + Kª, where a>0.
For what range of values of a does this production function exhibit increasing
returns to scale?
O For any value of a < 1
O For any value of a
O None of the above are correct.
For a = 0
O For any value of a > 1

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