Suppose that output q is a function of a single input, labor (L). Describe the returns to scale associated with each of the following production functions (a) (b) (c) q= log(L) The production function q= is associated with O A. constant returns to scale. O B. first decreasing and then increasing returns to scalo. OC. Increasing returns to scale. OD. decreasing returns to scale. OE. first increasing and then decreasing returns to scale.
Suppose that output q is a function of a single input, labor (L). Describe the returns to scale associated with each of the following production functions (a) (b) (c) q= log(L) The production function q= is associated with O A. constant returns to scale. O B. first decreasing and then increasing returns to scalo. OC. Increasing returns to scale. OD. decreasing returns to scale. OE. first increasing and then decreasing returns to scale.
Chapter9: Production Functions
Section: Chapter Questions
Problem 9.2P
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