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A factory has production function Q = f(L, K). In year 1: 212 = f(78, 144) In year 5: 309 = f(117, 216) This production function displays increasing returns to scale. True False

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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A factory has production function Q = f(L, K). In year 1: 212 = f(78, 144) In year 5: 309 = f(117, 216) This production function displays increasing returns to scale.

True

False

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