Microeconomics

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Moderate

Decreasing Returns to Scale

MICRO-L60YGG

Decreasing returns to scale, simply put, means when you double your inputs, you get less than double the output.

Which of the following equations have decreasing returns to scale?

Select ALL that apply.

A

$q(L,K) = 2L + K$

B

$q(L,K) = L^{1/3}K^{2/3}$

C

$(L,K) = \frac{1}{LK}$

D

$q(L,K) = L^0.5 + K^0.5$