Answer to Question #327868 in Macroeconomics for Thapelo nailana

Question

Consider the following Cobb Douglas Production Function:

Y =√K √N

when K = 49 and N = 81

2.2 Is this production function characterised by constant returns to scale? Demonstrate.

Answer 1

Y = 7 $\cdot$ 9 = 63

if we multiply K and N on 2, we will have:

Y = $\sqrt{98 \cdot 162} = 126$

126/63 = 2

So, answer is Yes.