Question

Which of the following production functions exhibit constant returns to scale?I. Q=6−q^4II. Q=2K+LIII. Q=K^0.8 L^0.2

Answer 1

Answer:

Option 3

Explanation:

This is because the sum of the powers of both labour (L) and capital (K) equals 1

0.8 + 0.2 = 1