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The Given Production Function Exhibits Which of the Following

Question 18

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The given production function exhibits which of the following? The given production function exhibits which of the following?   A)  constant returns to scale - for every 100% increase in input, there is a 100% increase in output. B)  decreasing returns to scale - for every 100% increase in input, there is a .700% increase in output. C)  decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output D)  increasing returns to scale - for every 100% increase in input, there is a 700% increase in output E)  increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.


A) constant returns to scale - for every 100% increase in input, there is a 100% increase in output.
B) decreasing returns to scale - for every 100% increase in input, there is a .700% increase in output.
C) decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output
D) increasing returns to scale - for every 100% increase in input, there is a 700% increase in output
E) increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.

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