Consider the following production function for combination


Consider the following production function for combination of capital and labor, Q=f(L,K)=L^0.4*K^0.5. Is this function homogeneous in K and L?In the long-run, does it exhibit increasing, constant, or decreasing returns to scale?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Consider the following production function for combination
Reference No:- TGS0655056

Now Priced at $10 (50% Discount)

Recommended (94%)

Rated (4.6/5)