Consider the Production Function Y=4F(L,K,H,N)

question 112

Essay

Consider the production function Y=4F(L,K,H,N). Suppose F(10, 8, 6, 5) = 100 and F(30, 24, 18, 15) = 300. Does the production function have the property of constant returns to scale? Why or why not?

---

Definitions:

Z Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations.

Mean

The average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of the numbers.

Inferential Statistics

Involves making predictions or inferences about a population based on a sample of data.

Probability

A measure of the likelihood that a particular event will occur, usually expressed as a number between 0 and 1.