In the production function Y = f(K, NA), for a given state of technology, constant returns to scale implies that output (Y) will increase by 7% when
A) K or NA increase by 7%.
B) K and N increase by 7%.
C) N or A increase by 7%.
D) N and A increase by 7%.
E) all of the above
B
Economics
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Explain why in the case of economies of scope the production possibility frontier is bowed outward
What will be an ideal response?
Economics
Wilbur's Widgets, a widget company, produces 100 widgets. Its average fixed cost is $6 and its total variable cost is $400. The total cost of producing 100 widgets is
A. $306. B. $400. C. $600. D. $1,000.
Economics