A firm has a production function f(x, y) = 1.80(x0.10 + y0.10)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has increasing returns to scale. increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1. increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. decreasing returns to scale. constant returns to scale.
A firm has a production function f(x, y) = 1.80(x0.10 + y0.10)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has increasing returns to scale. increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1. increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. decreasing returns to scale. constant returns to scale.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 15SQ
Related questions
Question
A firm has a production function f(x, y) = 1.80(x0.10 + y0.10)2 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has
increasing returns to scale. |
|
|
increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1. |
|
increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise. |
|
decreasing returns to scale. |
|
constant returns to scale. |
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