Question

A firm's production function is q = 5l2/3k1/3.

a.does this production function exhibit constant, increasing, or decreasing returns to scale and why?

Answer 1

The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalised the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country.