Solved

A Linear Specification,Q = AK + BL,is Not Appropriate for Estimating

Question 55

Multiple Choice

A linear specification,Q = aK + bL,is not appropriate for estimating a production function because


A) the marginal products of the inputs are assumed constant.
B) it does not allow the firm to substitute capital for labor.
C) the firm could produce positive levels of output at zero cost.
D) both b and c
E) all of the above

Correct Answer:

verifed

Verified

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

Related Questions

Q45: Which of the following represents a short-run

Q46: The manager of Greene Enterprises,Inc.,recently estimated its

Q47: A short-run marginal cost function is estimated

Q48: The empirical specification <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2562/.jpg" alt="The empirical

Q49: Straker Industries estimated its short-run costs using

Q50: When estimating a cubic short-run production function

Q51: estimating a short-run production function of the

Q52: The empirical specification <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2562/.jpg" alt="The empirical

Q53: A short-run production function was estimated as

Q54: The manager of Greene Enterprises,Inc.,recently estimated its