Consider the Production Function Q = F(L,K)= 5L²K²

question 42

Essay

Consider the production function Q = F(L,K)= 5L²K².Does this technology have increasing,decreasing or constant returns to scale? Explain your answer in two different ways.

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Definitions:

Common Stock

Represents ownership shares in a corporation, providing voting rights and entitling shareholders to a portion of the company's profits in the form of dividends.

Long-Term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable, long-term leases, and pension obligations.

Date of Acquisition

The specific date on which one company gains control over another entity or asset, crucial for accounting and legal purposes.

Consolidated Common Stock

Consolidated common stock refers to the aggregation of common stock holdings across a group of consolidated companies, presented as a singular amount in consolidated financial statements.