Which of the Following Equations Best Represents the Concept of Constant

question 51

Multiple Choice

Which of the following equations best represents the concept of constant returns to scale?

• A) 3Y = AF(3K, 3L)
• B) 2Y = 2AF(2K, 2 L)
• C) 1/4Y = (AF / 4 )(4K, 4L)
• D) 5Y = [AF(K, L)] / 5

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