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The production function is y = (L^0.5)(C^0.5), this technology exhibits constant returns to scale. True False

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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The production function is y = (L^0.5)(C^0.5), this technology exhibits constant
returns to scale.
True
False

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