(Appendix) Which of the Following Production Functions Exhibits Increasing Returns

question 36

Multiple Choice

(Appendix) Which of the following production functions exhibits increasing returns to scale?

• A)Q = K^1/2L^l/2
• B)Q = K^l/2L^2/3
• C)Q = K^l/4L^l/3
• D)Q = K/L

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Definitions:

Total Costs

The complete sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Earrings

Jewelry worn on the earlobes or other parts of the ear, often for adornment.

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Total Variable Costs

The sum of all costs that vary directly with the level of output produced.