Consider the production function Q=10L-.5L^2+24K-K^2 for L and K in the range 0 to 10 units. Does this production function exhibit diminishing returns to each input? Does it exhibit decreasing returns to scale? Explain.
Provide one business example for increasing returns to scale and decreasing returns to scale respectively. How does this characteristic affect its business strategies? Justify your arguments.
Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale.
A. Q = 10X + 4Y + 0.25Z
B. Q = 12L + 5K + 500
C. Q = 4A + 14B + 3AB
D. Q = 5L2 + 5LK + 5K2
E. Q = 3L0.3K0.4
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