Can a Production Function with Two Factors Exhibit Increasing Returns

question 20

Essay

Can a production function with two factors exhibit increasing returns to scale while at the same time have diminishing returns to each factor?

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Definitions:

Homo Clade

The taxonomic group that includes modern humans and their close relatives and ancestors, characterized by certain evolutionary traits such as bipedalism.

Smaller Sized Jaw

A smaller sized jaw refers to a jaw that is reduced in size compared to the common anatomical norm, affecting chewing and sometimes speech.

Oldowan Technology

The earliest known stone tool industry, characterized by simple tools and used by early humans around 2.6 million years ago.

Hand Axe

A prehistoric stone tool with two faces that was used for chopping, cutting, and scraping, characteristic of the Lower Palaeolithic period.