Take the Cobb-Douglas production function 𝐹(𝐾, 𝐿) = 𝐴𝐾^(𝛼)𝐿^( 1−𝛼) Demonstrate that the function has constant returns to scale after quadrupling the inputs of production

Answer 1

Simple. Let K=L = 1 Then Q=( 1^¤)(1)^(1-¤)= 1^(¤+1-¤) = 1¹

Now quadruple K and L so K=L=4

Then Q=( 4^¤)(4)^(1-¤)= 4^(¤+1-¤) = 4¹

You can try it for other mixes to convince yourself.

I love this Stuff. Sinds like you are getting into Solow Growth models.