The Production Function Q = 50K^0.25L^0.25 Exhibits

question 15

Multiple Choice

The production function Q = 50K^0.25L^0.25 exhibits

• A) increasing returns to scale.
• B) constant returns to scale.
• C) decreasing returns to scale.
• D) increasing, then diminishing returns to scale.
• E) negative returns to scale.

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Definitions:

Solve

To find the solution or answer to a problem or equation.

Set Notation

The formal language used to describe a set, including symbols and conventions for expressing membership, union, intersection, and other set properties.

Union

The set containing all elements from two or more given sets, without duplication.

Absolute Value

A mathematical function that measures the distance of a number from zero on the number line, disregarding direction; it's always non-negative.