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Following are different algebraic expressions of the production function. Decide whether each one has constant, increasing, or decreasing returns to scale.
a. Q = 75L0.25 K0.75
b. Q = 75A0.15 B0.40 C0.45
c. Q = 75L0.60 K0.70
d. Q = 100+50L+50K
e. Q = 50L+50K+50LK
f. Q = 50L2 + 50K2
g. Based on the answers for the preceding equations, can you make any generalizations about the functional form of a production equation, the relative magnitudes of the coefficients, and the nature of the returns to scale? Explain.
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