Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is (are) TRUE?
A) The production function has decreasing returns to scale.
B) The marginal productivity of labor falls as labor increases in the short run.
C) Capital and labor can be substituted for one another.
D) All of the above.
D
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A miniature golf course is a good example of where fixed costs become relevant to the decision of when to open and when to close for the season
a. True b. False Indicate whether the statement is true or false
Figure 10-6
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In Figure 10-6, which graph best illustrates an adverse supply shock accompanied by an increase in government spending?
A. -1 B. -2 C. -3 D. -4
From Figure 6-2, we can determine that demand is ____ between P = 12 and P = 10 and ____ between P = 6 and P = 4.
A. elastic; elastic B. elastic; inelastic C. inelastic; elastic D. inelastic; inelastic
When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price elasticity of demand for this product is
A. -67. B. -0.67. C. -0.15. D. -1.5.