What restrictions should be placed on the coefficients


Here is the problem I'm having difficulties with: Consider a production function of the form q = (beta_0) + (beta_1)*(sqrt(KL)) + (beta_2)*(K) + (beta_3)*(L) where 0 is less than and equal to (Beta_i) which is then less than and equal to 1. for i = 0,...,3, if this production function is to exhibit constant returns to scale, what restrictions should be placed on the coefficients (beta_i)?

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: What restrictions should be placed on the coefficients
Reference No:- TGS058947

Expected delivery within 24 Hours