Question

Please classify each the following production functions as increasing returns to scale (IRS), constant returns to...

Please classify each the following production functions as increasing returns to scale (IRS), constant returns to scale (CRS), or decreasing returns to scale (DRS). Technique: substitute tK and tL for K and L and check the resulting effect on output (that is, compute q after the inputs double). Remember the rules that (ab)n = anbn, and aman =am+ n. Show your work.

q = L + K0.35L0.65

q = 2 + K0.35L0.65

q = L K

q = L + K

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