Multiple Choice
Suppose the production of paved roadways can be represented as q = L⁰.⁵ + K⁰.⁵.Which of the following statements is (are) TRUE?
A) Labor is subject to diminishing marginal productivity in the short run.
B) Labor and capital are imperfect substitutes.
C) The isoquants for paved roadways are convex.
D) All of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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