A Leontief production function is given by f(k,l)=min{k/a,l/b). Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale? A perfect substitutes production function is given by f(k,l)=al+bk. Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale?

A Leontief production function is given by f(k,l)=min{k/a,l/b). Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale? A perfect substitutes production function is given by f(k,l)=al+bk. Does it exhibit constant returns to scale, increasing returns to scale, or decreasing returns to scale?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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