Explain each of the following: (1 ) constant returns to scale; (2 ) decreasing returns to capital; and (3 ) decreasing returns to labor
What will be an ideal response?
All three of these things refer to characteristics of the production function. CRS means that if all inputs change by the same proportion, the level of output will change by the same proportion. Decreasing returns to capital and labor indicates that increases in either resource will cause output to increase but at a decreasing rate.
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Refer to the scenario above. What is the present value of Option C?
A) $2,763.64 B) $3,662.44 C) $4,516.80 D) $5,800.79
The following Phillips curve of would be consistent with the _____ model(s)
a. Keynesian. b. monetarist. c. monetarist and classical. d. classical. e. None of the above
Most economists agree that while there are a seemingly endless number of ways to promote economic development:
A. there are just as many ways to measure effectiveness. B. there are few ways to measure their effectiveness. C. there is no way to determine which ways are the best. D. there is no need to measure effectiveness.
Suppose the government imposes a 20-cent tax on the sellers of artificially-sweetened beverages. The tax would shift
a. demand, raising both the equilibrium price and quantity in the market for artificially-sweetened beverages. b. demand, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially-sweetened beverages. c. supply, raising the equilibrium price and lowering the equilibrium quantity in the market for artificially-sweetened beverages. d. supply, lowering the equilibrium price and raising the equilibrium quantity in the market for artificially-sweetened beverages.