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Microeconomics

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Moderate

Increasing Returns to Scale

MICRO-JCZEGV

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

Which of the following equations have increasing returns to scale?

Select ALL that apply.

A

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

B

$q(L,K) = L^{4/3}K^{4/3}$

C

$q(L,K) = \cfrac{LK}{2}$

D

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