For each of the following production functions, determine if there are increasing. decreasing, or constant returns to scale. a. F(K,L)- 3K¹0 L20 b. F(KL)=2K2 L20 c. F(KL) K¹ L10 d. If we change the value of the leading constants scaling our production functions, would this change your answer?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter7: Production Economics
Section: Chapter Questions
Problem 1.5CE
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For each of the following production functions, determine if there are increasing,
decreasing, or constant returns to scale.
a. F(K,L)= 3K1 L20
b. F(K,L) = 2K2/3 L20
c. F(K,L)=K¹4 L10
d. If we change the value of the leading constants scaling our production functions,
would this change your answer?
Transcribed Image Text:For each of the following production functions, determine if there are increasing, decreasing, or constant returns to scale. a. F(K,L)= 3K1 L20 b. F(K,L) = 2K2/3 L20 c. F(K,L)=K¹4 L10 d. If we change the value of the leading constants scaling our production functions, would this change your answer?
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