Q) The production function Q = L1/2K exhibits: Group of answer choices a) Increasing returns to scale but no diminishing marginal products. b) Increasing returns to scale and diminishing marginal products of both L and K. c) Decreasing returns to scale. d) Increasing returns to scale and diminishing marginal product of L only.
Q) The production function Q = L1/2K exhibits: Group of answer choices a) Increasing returns to scale but no diminishing marginal products. b) Increasing returns to scale and diminishing marginal products of both L and K. c) Decreasing returns to scale. d) Increasing returns to scale and diminishing marginal product of L only.
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.7P
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Question
Q)
The production function
Q = L1/2K exhibits:
Group of answer choices
a) Increasing returns to scale but no diminishing marginal products.
b) Increasing returns to scale and diminishing marginal products of both L and K.
c) Decreasing returns to scale.
d) Increasing returns to scale and diminishing marginal product of L only.
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