Question #144534

Given the production function

Q = A Kα Lβ Nγ

where Q is the rate of output and K, L, and N represent inputs of capital, labor and land, respectively, determine:

(a)The specific conditions under which returns to scale would be increasing, constant, and decreasing.

(b)The equation for the marginal product function for each input

Q = A Kα Lβ Nγ

where Q is the rate of output and K, L, and N represent inputs of capital, labor and land, respectively, determine:

(a)The specific conditions under which returns to scale would be increasing, constant, and decreasing.

(b)The equation for the marginal product function for each input

Expert's answer

- If the functions such as the output increases with the same proportional change as all of the existing input then the return of scale is constant, when the output increases by a less proportional change of all the inputs it is called the decreasing rate of return and lastly when the output output increases with a higher proportion change than all the inputs, it is called the increasing rate of return.
- Q = A Kα Lβ Nγ

hence the Marginal product function is

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