Which of the following production functions exhibit constant returns to scale?I. Q=6−q^4II. Q=2K+LIII. Q=K^0.8 L^0.2

Question

asked Nov 14, 2021 84.9k views

1 Answer

Dave Richardson · Answer 1 · 2021-11-18T20:43:27+0000

Answer:

Option 3

Step-by-step explanation:

This is because the sum of the powers of both labour (L) and capital (K) equals 1

0.8 + 0.2 = 1