For the production function q = L^0.5 K^0.5, doubling both L and K

more than doubles output: increasing returnsCorrect answerYour answerless than doubles output: decreasing returnsCorrect answerYour answerleaves output unchangedCorrect answerYour answerdoubles output: constant returns to scaleCorrect answerYour answer

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CorrectNot quiteAnswer D

Correct answer: D

(2L)^0.5 (2K)^0.5 = 2^(0.5 + 0.5) L^0.5 K^0.5 = 2q.
The exponents add to 1, so output doubles: constant returns to scale.

Concept: Returns to scale from exponents
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsReturns to scale

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For the production function q = L^0.5 K^0.5, doubling both L and K

Explanation