Consider the Production Function Y=2F(L,K,H,N)

question 76

Essay

Consider the production function Y=2F(L,K,H,N). Suppose F(12, 10, 9, 7) = 100 and F(24, 20, 18, 14) = 180. Does the production function have the property of constant returns to scale? Why or why not?

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Definitions:

Complement

A good or service that is used together with another, where the use or consumption of one increases the value or demand of the other.

Inter-relatedness

The condition or fact of being connected and having reciprocal effects or influences among components or variables.

Demand

The willingness and ability of consumers to purchase a particular quantity of goods or services at a given price and time.

Toothpaste

A paste or gel used with a toothbrush to clean and maintain the aesthetics and health of teeth.