A production function of the form Q = 150L.75 K.50exhibits ________ in the long run.
A. diminishing returns to the variable input
B. increasing returns to scale
C. constant returns to scale
D. decreasing returns to scale
Answer: B
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The invisible hand is mostly guided by:
A) costs of production. B) quantity of goods and services sold. C) market prices. D) government intervention.
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A. prevents the market mechanism from reallocating resources more efficiently. B. discourages production. C. may lead to extreme shortages of vitally needed products. D. All of the responses are correct.
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A. economies realized by producing several goods simultaneously. B. economies in marketing and transportation of many products. C. economies from being larger and have lower cost per unit. D. all of the above.