Which one of the following production functions exhibits decreasing returns to scale?
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2 marksMicroeconomicsProduction and returns to scaleReturns to scale and homogeneityModerateabout 1 min
UGC-NET 2025 Question 84: Production and returns to scale
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Which one of the following production functions exhibits decreasing returns to scale? (A) A K^(1/4)√L (B) A K^α L^(1-α) (C) A(3K + 5L) (D) A√(K L³)
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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