Cobb-Douglas production function have decreasing returns to scale.
Answer the following statement true (T) or false (F)
False
Rationale: Cobb-Douglas production functions have increasing returns to scale if the exponents on the inputs sum to something greater than 1.
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Aggregate demand is the total demand for intermediate goods and services in an entire economy
Indicate whether the statement is true or false
Typical structure characteristics of interest to Industrial Organization researchers include
a. Barriers to entry b. Product differentiation among firms c. The number and size distribution of firms d. All of the above
One would expect to observe a diminishing marginal product of labor when crowded office space reduces the productivity of new workers
a. True b. False Indicate whether the statement is true or false
A distinguishing characteristic of a natural monopoly is that
a. the government restricts the number of firms to one for the industry b. the ATC curve is downward sloping over the entire production range c. the TC curve is downward sloping over the entire production range d. its demand curve is horizontal e. the industry's demand curve is also the firm's demand curve