Answered: For the production function Q = 0.2L2…

For the production function Q = 0.2L2 returns to scale is: a.Constant Returns to Scale b.Decreasing Returns to Scale c.Increasing Returns to Scale d.Zero Return to Scale

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 15SQ

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Concept explainers

Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

Question

For the production function Q = 0.2L²returns to scale is:

a.Constant Returns to Scale

b.Decreasing Returns to Scale

c.Increasing Returns to Scale

d.Zero Return to Scale

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