The production function is:
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2 marksMicroeconomicsProduction and returns to scaleReturns to scale and homogeneityModerateabout 1 min
UGC-NET 2024 Question 28: Production and returns to scale
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The production function Q = LK/(L+K) is: (A) Homogenous of degree 1 (B) Homogenous of degree 0 (C) Homogenous of degree 2 (D) Homogenous of degree 1/2
Production and returns to scale has come up 92 times in 6 exams since 2007.
What this question tests
This question is on Returns to scale and homogeneity, part of Production and returns to scale in Microeconomics.
How output changes when all inputs scale up, including Euler's theorem and the degree of homogeneity.
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