Match the following: f(kX1,kX2) = k.f(X1,X2)

Question

Match the following:

A	B
f(kX1,kX2) = k.f(X1,X2)	Increasing returns to scale
f(kX1,kX2) < k,.f(X1,X2)	Decreasing return to scale
f(kX1,kX2) > k.f(X1,X2)	Constant returns to scale

Answer 1

f(kX₁,kX₂) = k.f(X₁,X₂) : Constant returns to scale

f(kX₁,kX₂) < k,.f(X₁,X₂) : Decreasing return to scale

f(kX₁,kX₂) > k.f(X₁,X₂) : Increasing returns to scale