Bridget's Brewery production function is given by y(K, L) = 2
, where K is the number of vats she uses and L is the number of labor hours. Does this production process exhibit increasing, constant or decreasing returns to scale? Holding the number of vats constant at 4, is the marginal product of labor increasing, constant or decreasing as more labor is used?

Question

Bridget's Brewery production function is given by y(K, L) = 2  
, where K is the number of vats she uses and L is the number of labor hours. Does this production process exhibit increasing, constant or decreasing returns to scale? Holding the number of vats constant at 4, is the marginal product of labor increasing, constant or decreasing as more labor is used?

Quizplus · Accepted Answer

The Answer of Bridget's Brewery production function is given by y(K, L) = 2  
, where K is the number of vats she uses and L is the number of labor hours. Does this production process exhibit increasing, constant or decreasing returns to scale? Holding the number of vats constant at 4, is the marginal product of labor increasing, constant or decreasing as more labor is used?

Bridget's Brewery Production Function Is Given by Y(K, L) =