Jason has a boat-building firm. It uses labour L, capital K, and materials M, to build its boats. Its production function is Q= F(L,K,M)= ALaKbMg. For what values of a, b, and g does Jason’s technology have constant returns to scale? Increasing returns to scale? Decreasing returns to scale?
Originally posted 2017-01-11 09:38:47. Republished by Blog Post Promoter