Solved

If Output Is Described by the Production Function Y =

Question 118

Multiple Choice

If output is described by the production function Y = AK0.2L0.8, then the production function has:


A) constant returns to scale.
B) diminishing returns to scale.
C) increasing returns to scale.
D) a degree of returns to scale that cannot be determined from the information given.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q5: In a closed economy, Y - C

Q50: In the circular flow diagram, firms receive

Q53: With a Cobb-Douglas production function, the share

Q62: The demand for the economy's output:<br>A) is

Q97: The supply and demand for loanable funds

Q110: If the productivity of farmers has risen

Q115: An increase in the supply of capital

Q115: If the consumption function is given by

Q120: Consider a competitive economy in which factor

Q148: The home that would have the highest