Suppose the production function for good q is given by
Where k and l are capital and labor inputs.Consider three statements about this function:
I.the function exhibits constant returns to scale.
II.the function exhibits diminishing marginal productivities to all inputs.
III.the function has a constant rate of technical substitution.
Which of these statements is true?
A) All of them
B) None of them
C) I and II but not III
D) I and III but not II
Correct Answer:
Verified
Q1: The marginal rate of technical substitution (RTS)of
Q2: A firm's isoquant shows:
A)the amount of labor
Q3: The marginal physical productivity of labor is
Q4: The production function Q6: Which of the following production functions exhibits Q7: If more and more labor is employed
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