Table 7-4 shows the shows the quantities of labor and capital required to produce various levels of output.
Table 7-4
-Refer to Table 7-4.When the firm expands from 6 units of capital and 2 units of labor to 12 units of capital and 4 units of labor,the production function exhibits:
A) increasing returns to scale.
B) constant returns to scale.
C) decreasing returns to scale.
D) diminishing marginal returns.
Correct Answer:
Verified
Q82: A production function embodies increasing,constant,and decreasing returns
Q83: A production function of the form Q
Q86: A factory that manually produces pens employs
Q87: The power associated with an input in
Q91: If a firm doubles its usage of
Q92: Which of the following represents a Cobb-Douglas
Q94: Returns to scale can be evaluated by
Q96: Which of the following correctly explains increasing
Q96: If a firm doubles its usage of
Q99: Which of the following may explain why
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents