Question

Consider the production function f(x1,x2) =X²,X². Does this exhibit
constant, increasing, or decreasing returns to scale? With reasons
This production function exhibits constant returns to scale. This is because when both inputs (x1 and x2) are increased by the same proportion, the output (X²,X²) is also increased by the same proportion. This indicates that the production function is operating under constant returns to scale.

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