Production function: Q = 4L 1/2 k 2/3 exhibits-

CA Foundation · Business Economics · MTP · May 2026
Production function: Q = 4L 1/2 k 2/3 exhibits-
(A) A. increasing returns to scale
(B) B. decreasing returns to scale
(C) C. constant returns to scale
(D) D. increasing returns to a factor

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. increasing returns to scale

Topics: Theory of Production and Cost

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