The parameter A re-scales the production function 
-- allowing us to transform a decreasing returns to scale production function to an increasing returns to scale production function.
Answer the following statement true (T) or false (F)
False
Rationale:
.You might also like to view...
Entrepreneurs do all of the following EXCEPT
A) organize labor, land, and capital. B) come up with new ideas about what and how to produce. C) bear risk from business decisions. D) own all the other resources used in the production process.
In the above figure, the combination of computers and televisions shown by point x
A) is not attainable at the point in time for which the graph is drawn. B) can be attained only if some of society's resources are unemployed. C) suggests that the law of increasing relative costs does not hold. D) results only because society allocates its resources inefficiently.
If both supply and demand increase, then the change in equilibrium quantity is indeterminate
a. True b. False
If an unintended increase in business inventories occurs:
A. we can expect aggregate production to be unaffected. B. we can expect businesses to increase the level of production. C. we can expect businesses to lower the level of production. D. aggregate expenditures must exceed the domestic output.