Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scaleA. Q = 10X + 4Y + 0.25ZB. Q = 12L + 5K + 500C. Q = 4A + 14B + 3ABD. Q = 5L2 + 5LK + 5K2Which production function exhibit constant returns to scale?a.Cb.Bc.Ad.DWhich production function exhibit increasing returns to scale?a.A and Bb.C and Dc.D and Ad.B and CWhich production function exhibit decreasing returns to scale?a.Ab.Cc.Bd.D

To determine whether a production function exhibits constant, increasing, or decreasing returns to scale, we need to multiply each input by a constant (let's say t) and see how the output changes.

1. Q = 10X + 4Y + 0.25Z If we multiply each input by t, we get: Q = 10tX + 4tY + 0.25tZ = t(10X + 4Y + 0.25Z). This is t times the original output, so this function exhibits constant returns to scale. The correct answer is (c) A.

2. Q = 12L + 5K + 500 If we multiply each input by t, we get: Q = 12tL + 5tK + 500. This is not t times the original output, so this function does not exhibit constant returns to scale. It cannot be determined from the information given whether this function exhibits increasing or decreasing returns to scale.

3. Q = 4A + 14B + 3AB If we multiply each input by t, we get: Q = 4tA + 14tB + 3t^2AB. This is more than t times the original output if t > 1, so this function exhibits increasing returns to scale. The correct answer is (b) C.

4. Q = 5L^2 + 5LK + 5K^2 If we multiply each input by t, we get: Q = 5(tL)^2 + 5t^2LK + 5(tK)^2 = t^2(5L^2 + 5LK + 5K^2). This is t^2 times the original output, so this function exhibits increasing returns to scale. The correct answer is (c) D.

So, the production functions that exhibit constant returns to scale are A, those that exhibit increasing returns to scale are C and D, and it cannot be determined from the information given which production functions exhibit decreasing returns to scale.