Solved

Let the Production Function Be Q = AL^aK^b

Question 48

Multiple Choice

Let the production function be q = AL^aK^b.The function exhibits decreasing returns to scale if

A) a + b = 1.
B) a + b > 1.
C) a + b < 1.
D) Cannot be determined with the information given.

Related Questions

Q43: Suppose the production of mp3 players can

Q44: The implementation of the assembly line is

Q45: Albert's Pretzel Baking Company used to have

Q46: What do we mean by efficient production?

Q47: Consider the following short-run production function: q

Q49: How much do outputs increase when labor

Q50: Explain why labor might not always be

Q51: Average productivity will fall as long as<br>A)

Q52: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6808/.jpg" alt=" -The above figure

Q53: Cobb-Douglas production functions can never possess varying