QuestionAnalyze the function $f\left(x_{1}, x_{2}\right)=x_{1}^{2} x_{2}^{2}$. Is it constant, increasing, or decreasing returns to scale?

Studdy Solution
From the equation, we can see that $n =4$.Since $n >1$, the function exhibits increasing returns to scale.
The production function $f\left(x_{1}, x_{2}\right)=x_{1}^{2} x_{2}^{2}$ exhibits increasing returns to scale.