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Quantitative Analysis Problem: “Returns to Scale Estimation.” Determine whether the following production functions exhibit constant, increasing,...

Quantitative Analysis

  1. Problem: “Returns to Scale Estimation.”

Determine whether the following production functions exhibit constant, increasing,

or decreasing returns to scale.

a).     Q = 0.6L + 20K +10F

b).     Q = 2L2 + 3LK + 5K2

c).     Q = 20L0.25K0.74

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