eturns to scale

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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A production function is given by the following:
F(L, K) = 5L2 + 4KiL
%3D
The production function exhibits:
O Increasing returns to scale
O Decreasing returns to scale
O Constant returns to scale
O Diminishing marginal product of labor
Transcribed Image Text:A production function is given by the following: F(L, K) = 5L2 + 4KiL %3D The production function exhibits: O Increasing returns to scale O Decreasing returns to scale O Constant returns to scale O Diminishing marginal product of labor
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