Econ-Returns to scale

Determine whether returns to scale is decreasing, increasing or constant:
Q = 2K + 3L + KL


Take a shot. Hint: increase both K and L by, say 10%. Does Q rise by more than 10% (increasing), less than 10% (decreasing), or exactly 10% (constant)

  1. 👍
  2. 👎
  3. 👁
  1. Increasing returns to scale

    1. 👍
    2. 👎
  2. increasing

    1. 👍
    2. 👎

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