MCQ Practice

Which one of the following production function best example the returns to scale effect?

A

Y = aX _1^alpha _1,,X _1^alpha _2,,X _1^alpha _3,,.,.,.,.,.,.,.,X _n ^alpha _n

B

Y = a _0 + a _1X _1 + a _2X _2 + a _3X _3,.,.,.,.,.,.,.,a _n X _n

C

Y = a _0 + a _1X + a _2X ^2 + a _3X ^3,.,.,.,.,.,.,.,a _n X ^n

D

fracY X _1 = a _0 + a _1X _1 + alpha _2(fracX _2X _1),.,.,.,.,.,.,.,alpha _n (fracX _n X _1)

Correct Answer: A