Answer asap n correctly n give proper explanation of the question . (long run production) For each of the following production functions, determine whether it exhibits decreasing, constant, or increasing returns to scale. (In all production functions, M is materials, K is capital and L is labor.) Show your proof in mathematics as well as your reasoning in words. (1) q = L + K (2) q = L0.60K0.40 (3) q = M0.7K0.7L0.6
Answer asap n correctly n give proper explanation of the question . (long run production) For each of the following production functions, determine whether it exhibits decreasing, constant, or increasing returns to scale. (In all production functions, M is materials, K is capital and L is labor.) Show your proof in mathematics as well as your reasoning in words. (1) q = L + K (2) q = L0.60K0.40 (3) q = M0.7K0.7L0.6
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.8P
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Answer asap n correctly n give proper explanation of the question . (long run production)
For each of the following production functions, determine whether it exhibits
decreasing, constant, or increasing returns to scale. (In all production functions, M is
materials, K is capital and L is labor.) Show your proof in mathematics as well as your
reasoning in words.
(1) q = L + K
(2) q = L0.60K0.40
(3) q = M0.7K0.7L0.6
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