Question

Do the function q = 3lk² exhibit increasing, constant, or decreasing returns to scale? What happens to the marginal product of each individual factor as that factor is increased while the other factor is held constant?

Answer 1

The function q = 3lk² exhibits constant returns to scale. The marginal product of each individual factor remains constant as that factor is increased while the other factor is held constant.

Step-by-step explanation:

The function q = 3lk² exhibits constant returns to scale. This means that as both factors of production, l and k, are increased in proportion, the output, q, also increases in proportion. The marginal product of each individual factor represents the additional output produced by increasing that factor while holding the other factor constant. In this case, as either l or k is increased while the other factor is held constant, the marginal product will remain constant because the function exhibits constant returns to scale.