The expansion path for a constant-returns-to-scale production function
a. is a straight line through the origin with a slope greater than 1 if w > v.
b. is a straight line through the origin with a slope greater than 1 if w < v.
c. is a straight line through the origin, though its slope cannot be determined by w and v alone.
d. has a positive slope but is not necessarily a straight line.
c
You might also like to view...
The economy can produce 15X and 15Y, 10X and 20Y, 5X and 25Y, or 0X and 30Y. It follows that opportunity cost of 1X is ___Y.
What will be an ideal response?
________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production
A) Competition B) Voluntary exchange C) Equity D) A centrally planned economy
The Fed is the bankers' bank. What functions of the Fed are involved in this role? What are the other important functions of the Fed?
What will be an ideal response?
If somebody posing as a vacationer were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers,
A) group price discrimination on the part of airlines would no longer be profitable. B) group price discrimination on the part of airlines would no longer be profit maximizing. C) the airlines would respond by raising further the price charged to business flyers. D) this person would not earn any economic profit.