Suppose that the production function is q=f(L, K) = La + Kª, where a>0. For what range of values of a does this production function exhibit increasing returns to scale? For any value of a < 1 None of the above are correct. O For a = 0 For any value of a For any value of a > 1

Suppose that the production function is q=f(L, K) = La + Kª, where a>0. For what range of values of a does this production function exhibit increasing returns to scale? For any value of a < 1 None of the above are correct. O For a = 0 For any value of a For any value of a > 1

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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Question

Suppose that the production function is q=f(L, K) = La + Ka, where a>0.
For what range of values of a does this production function exhibit increasing returns to scale?
For any value of a < 1
None of the above are correct.
O For a = 0
For any value of a
For any value of a > 1

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