Let the production function be q = ALaKb. The function exhibits decreasing returns to scale if
A) a + b = 1.
B) a + b > 1.
C) a + b < 1.
D) Cannot be determined with the information given.
C
Economics
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For a resource to be able to generate sustained competitive advantage over rivals, it must be
a. Valuable b. Rare c. Difficult to imitate or substitute away from d. All of the above
Economics
Which of the following is true of the shape of the long-run Phillips curve? a. It is horizontal
b. It is vertical. c. It is downward sloping. d. It is upward sloping.
Economics