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Assume a Cobb-Douglas production function of the form: q = 10L0

Economics

Assume a Cobb-Douglas production function of the form: q = 10L0.54 (0.62 What type of returns to scale does this production function exhibit? In this instance, returns to scale equal (Enter a numeric response using a real number rounded to two decimal places.) This production function exhibits A. increasing returns to scale. B. initially constant but then increasing returns to scale. O C. initially increasing but then constant returns to scale. D. constant returns to scale. ?? O E. decreasing returns to scale.

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