Final answer:
The production function Q(L,K,M) = 25K^0.25L^0.25M^0.25 exhibits constant returns to scale since the sum of the exponents is less than 1, but the overall production increases proportionally with the inputs due to the coefficient 25.
Step-by-step explanation:
The production function given is Q(L,K,M) = 25K0.25L0.25M0.25. To determine whether this production function has increasing, decreasing, or constant returns to scale, we need to examine the sum of the exponents of the inputs (K, L, M). In this case, the sum of the exponents is 0.25 + 0.25 + 0.25 which equals 0.75. Since the sum of the exponents is less than 1, this implies decreasing returns to scale. However, looking closely, we have the coefficient 25 before the variables, which indicates that for a proportional increase in all inputs by a factor of 't', output increases by 25t0.75. Thus, if we increase all inputs by a factor of t, the production level will increase by t times 25t0.75 which is 25t, indicating that the production function exhibits constant returns to scale.