State Whether the Following Production Functions Exhibit Increasing, Constant, or Decreasing

question 53

Essay

State whether the following production functions exhibit increasing, constant, or decreasing returns to scale in K and L.
(a)
(b)
(c)

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Definitions:

Reasonable Basis

A standard of evidence that suggests a belief or action is supported by a fair amount of facts or logical assumptions, often used in legal and regulatory contexts.

Franchisor

The original business or company that grants the license to third-party operators to conduct business under its name and system.

Hypothetical Basis

A theoretical foundation or scenario used for analysis or argument, often constructed to explore possibilities or outcomes.

Disclosure

Disclosure is the act of making new or vital information known, particularly facts that could influence decisions in a financial, legal, or personal context.