Does This Production Function,q = 10L⁰

question 123

Multiple Choice

Does this production function,q = 10L^0.5K^0.3,experience increasing,decreasing or constant returns to scale?

• A) Decreasing because a 100% increase in inputs increases outputs by 80%.
• B) Increasing because an 80% increase in inputs increases outputs by 100%.
• C) Decreasing because 0.5 + 0.3 < 1.
• D) A and C.

---

Definitions:

Basic Characteristics

Fundamental traits or attributes that define or determine the nature of something.

Dramatic Changes

Significant transformations or shifts that have a profound impact on a situation or individual.

Person's Life

The totality of experiences, relationships, values, and events that define an individual's existence.

Seven-Step Recovery

A structured approach in addressing and overcoming setbacks or errors, typically used in problem-solving or rehabilitation processes.