Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is (are) TRUE?
A) The production function has decreasing returns to scale.
B) The marginal productivity of labor falls as labor increases in the short run.
C) Capital and labor can be substituted for one another.
D) All of the above.
D
Economics
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Other things the same, if the government reduced its budget deficit, the country's trade balance would rise
a. True b. False Indicate whether the statement is true or false
Economics
For a firm in a perfectly competitive industry, the demand curve for its own product is
A) downward sloping. B) vertical. C) always above the marginal revenue curve. D) the same as the marginal revenue curve.
Economics