Let the production function be q = ALaKb. The function exhibits increasing returns to scale if
A) a + b = 1.
B) a + b > 1.
C) a + b < 1.
D) Cannot be determined with the information given.
B
Economics
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If money wages increase, the most likely result is a(n)
a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.
Economics
Suppose Jon Stewart of the "Daily Show" makes an annual income of $2,000,000. If he quit his television job and went into producing he could make $400,000 per year. Jon Stewart's annual economic rent to labor is
A) $1,400,000. B) $2,000,000. C) $400,000. D) $1,600,000.
Economics