Solved

To Get Increasing Returns to Scale Using the Production Function Yt=AtKt1/3Lt2/3Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 }

Question 13

Multiple Choice

To get increasing returns to scale using the production function Yt=AtKt1/3Lt2/3Y _ { t } = A _ { t } K _ { t } ^ { 1 / 3 } L _ { t } ^ { 2 / 3 } , we need to replace total factor productivity with:


A) more capital
B) the flow of ideas, At
C) the stock of ideas, At
D) the number 2
E) twice the factor productivity, 2×Aˉ2 \times \bar { A }

Correct Answer:

verifed

Verified

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

Related Questions