Business, 28.08.2021 01:00 CoolRahim9090
A farmer uses M units of machinery and L hours of labor to produce C tons of corn, with the following production function:
C = (L^0.5)(M^0.75)
This production function exhibits
A. no clear pattern of returns to scale.
B. constant returns to scale for all output levels.
C. increasing returns to scale for all output levels.
D. decreasing returns to scale for all output levels.
Answers: 3
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