Multiple Choice
If the output elasticities of all inputs used by a firm are summed together, then the total
A) will be greater than one if returns to scale are decreasing.
B) will be equal to one if returns to scale are constant.
C) will be less than one if returns to scale are increasing.
D) All of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
Q44: The firm hires 100 new employees and
Q45: All inputs are variable in the long
Q46: Output elasticity is equal to the marginal
Q47: Use the following to answer questions below:<br>
Q48: Use the following to answer questions below:<br>
Q50: Given: Q = 100K0.5L0.5, C* = $1,000,
Q51: If a firm is minimizing the total
Q52: Consider the following scenario: the firm estimates
Q53: Inputs that can be easily varied during
Q54: The point of inflection on the total