Multiple Choice
Suppose the production of VCRs can be represented by the following production function:
q = L⁰.⁴ K⁰.⁴.The firm currently produces q₁ units.If all inputs doubled,the new level of output will equal
A) 2⁰.⁴ q₁.
B) 2⁰.⁸ q₁.
C) 0.8 q₁.
D) 1.6 q₁.
Correct Answer:
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