Answered: Does the production function 50 q =…

Does the production function 50 q = 1000L - exhibit increasing, decreasing, or constant returns to scale? This production function exhibits V returns to scale.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 1.5CE

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Question

Does the production function
50
q = 1000L -
K
exhibit increasing, decreasing, or constant returns to scale?
This production function exhibits
returns to scale.

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