The production function q = 22K^0.6 L^0.3 exhibits A. constant returns to scale. B. increasing returns to scale. C. unknown returns to scale because the exponents are not equal.…

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KristoferA · Answer 1 · 2020-04-05T12:33:54+0000

Answer:

D. decreasing returns to scale.

The answer and procedures of the exercise are attached in the image below.

Explanation

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

The production function q = 22K^0.6 L^0.3 exhibits A. constant returns to scale. B-example-1

The production function q = 22K^0.6 L^0.3 exhibits A. constant returns to scale. B. increasing returns to scale. C. unknown returns to scale because the exponents are not equal.…

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