( C ) |3| Does this production technology have increasing , decreasing or constant returns to scale ?
For 2C), why is it root 1/2?? i tried plugging it in for decreasing returns to scale too and it worked but for increasing returns i couldnt figure out why there was a 1/2
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( C ) |3| Does this production technology have increasing , decreasing or constant returns toscale ?"Solution . This production technology does not have increasing returns to scale ."Insee this , consider input level = = 1 / 4 and scale increase " = 1, and note thatf ( xxx ) = VI= 4V 1 / 2= of ( 2) .
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