The Production Function Q = 50K^0.25L^0.75 Exhibits

question 49

Multiple Choice

The production function Q = 50K^0.25L^0.75 exhibits

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

---

Definitions:

Material Flows

The movement of raw materials, components, and finished products through production processes to delivery to the end user.

Physical Products

Tangible items that are manufactured, sold, and physically handled by the consumer, in contrast to services or digital goods.

Raw Materials

Basic substances in their natural, modified, or semi-processed states used as inputs for production.

Distribution

The process of making goods or services available to consumers through various channels.