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Two production functions

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Reference no: EM132069116

Determine which statement is true in regards to the two production functions shown below: 

1. Q = K0.75L0.75 

2. Q = K0.25L0.25 

a.The first exhibits decreasing returns to scale, while the second exhibits increasing returns to scale.

b.Both functions exhibit constant returns to scale.

c.The first exhibits increasing returns to scale, while the second exhibits decreasing returns to scale.

d.Both functions exhibit decreasing returns to scale

Reference no: EM132069116

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