Assignment:
Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.
a. Q = 75L0.25 K0.75
b. Q = 75A0.15 B0.40 C0.45
c. Q = 75L0.60 K0.70
d. Q = 100+50L+50K
e. Q = 50L+50K+50LK
f. Q = 50L2 + 50K2
g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.
Provide complete and step by step solution for the question and show calculations and use formulas.