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 7

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

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents