Consider a CES production function given by Q

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Q2.  Text -  B& B, 5th ed. Problem #6.24

Consider a CES production function given by Q = (K0.5+ L0.5)2.

a)      Does this production function exhibit increasing, decreasing, or constant returns to scale?

b)      Suppose that the production function took the form Q = (100 + K0.5+ L0.5)2. Does this production function exhibit increasing, decreasing, or constant returns to scale?

  • 11 years ago
Consider a CES production function given by Q
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