Question

Q = A LB Ka
Here, Q is the output and L and K represent units of labour and capital
respectively. A is a positive constant (also called the technology coefficient). a
and B are constants lying between 0 and 1.
Q (CL, CK) = A (CL)B (CK)a = Acß ca LB Ka = Aca+B LB Ka
Note that if a+B > 1 there will be increasing returns to scale. If a+B < 1 there
will be decreasing returns to scales. And, if a+b = 1 there will be constant
returns to scale (case of linear homogenous CDPF). Thus, depending on the
nature of the CRF, there will be increasing, decreasing or constant returns to​

Answer 1

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