Which of the Following Production Functions Displays Decreasing Returns to Scale

question 43

Multiple Choice

Which of the following production functions displays decreasing returns to scale?

• A) Q = aL + bK²
• B) Q = aL + bK
• C) Q = bLK
• D) Q = cL^.2K^.5
• E) Q = cL²K⁵

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Definitions:

U.S. Goods

Products and commodities that are manufactured or produced within the United States.

Summer Vacations

A period during the summer months where individuals take a break from work or school activities, often involving travel or leisure activities.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to provide in the market.

Canadian Goods

Products manufactured, produced, or grown in Canada.