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A firm has the production function q = f(L, K) = min{L¹/2, K1/2). This firm has: increasing returns to scale decreasing returns to scale None of the above constant returns to scale

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

A firm has the production function q = f(L, K) = min{L¹/2, K1¹/2}. This firm has:
increasing returns to scale
decreasing returns to scale
O None of the above
O constant returns to scale

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