Multiple Choice
Given the simple production function , where is the quantity of labor employed and is the quantity of capital employed, assuming and , what would it mean if output was less than 18 ?
A) The firm is out of business.
B) The firm is not employing labor and capital efficiently.
C) The production function was not specified correctly.
D) Labor is less productive than capital.
Correct Answer:

Verified
Correct Answer:
Verified
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