Microeconomics Theory- Production Function

Algebra Level 1

The Cobb–Douglas production function is a particular functional form of the production function, widely used to represent the technological relationship between the amounts of two or more inputs, particularly physical capital and labor, and the amount of output that can be produced by those inputs. Below are 4 functions. Identify the one/ones with increasing returns to scale.

  1. Q=2LK
  2. Q=L\(^{0.8}\)K\(^{0.2}\)
  3. Q=10L\(^{0.6}\)K\(^{0.5}\)
  4. Q=0.5L\(^{0.6}\)K\(^{0.2}\)

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