Posted: August 2nd, 2015

Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L), then:

Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L), then:
this production function will certainly display decreasing returns to scale
this production function will certainly display constant returns to scale
this production function will certainly display increasing returns to scale
this production function may display increasing returns to scale