Consider the following production function: q= 4L^0.7K^0.4. Which term describe this production function's returns to scale?...

Question

Question

Consider the following production function: q= 4L^0.7K^0.4. Which term describe this production function's returns to scale?

a. Decreasing Returns to Scale

b. Constant Returns to Scale

c. Increasing Returns to Scale

business economics

Answer 1

Answer #1

Answer 2

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