Determine whether returns to scale is decreasing, increasing or constant:

Q = 2K + 3L + KL

Take a shot. Hint: increase both K and L by, say 10%. Does Q rise by more than 10% (increasing), less than 10% (decreasing), or exactly 10% (constant)

2 answers

Increasing returns to scale

increasing

Ask a New Question or answer this question.

Similar Questions

When a firms long run avg cost curve is horizontal for a range of output, then in that range production displays:a) constant avg
1. 1 answer
1. Consider the production function f(x1,x2) =X²,X². Does this exhibitconstant, increasing, or decreasing returns to scale?
1. 1 answer
Consider the production function f(x1,x2) =X²,X². Does this exhibitconstant, increasing, or decreasing returns to scale? With
1. 1 answer
4. . Discuss the laws of variable proportions and returns to scale in relation to technology and cost curves of firms and
1. 1 answer