A firm has a production function f (x, y) = 1.80(x^0.80 + y^0.80)^3 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has:

A firm has a production function f (x, y) = 1.80(x^0.80 + y^0.80)^3 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has:

A firm has a production function f (x, y) = 1.80(x^0.80 + y^0.80)^3 whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has:




Answer: increasing returns to scale.