Question

A production function expresses the relationship between inputs, such as capital (K) and labor (L), and output (Y). The following equation represents the functional form for a production function: q=f(K, L). If a production function exhibits constant returns to scale, this means that if you double the amount of capital and labor used, output is twice its original amount. Suppose the production function is as follows: f(K, L)=4K+9L. Prove that this production function exhibits constant returns to scale by completing the following algebraic equations. Assume that z is a positive number. f(zK, zL) = = = = zq Which of the following production functions exhibit constant returns to scale? Check all that apply. f(K, L)=3K0.4L0.2 f(K, L)=KL f(K, L)=7K0.4L0.6 Continue without saving

Answer 1

f (K, L) = 7K0.4 L0.6

f (K, L) = 3K0.4 L0.2

Step-by-step explanation:

The production function demonstrates the relationship between the input of capital and labor and the output. The simplest relation between labor and capital is the linear relation which is shown with K and L functions. The labor and capital input determines the level of output.