What are the features of a Cobb-Douglas production function?
What will be an ideal response?
A Cobb-Douglas production function is of the form: Y= A × Ka × Hb. Y denotes total output, A denotes the level of technology, K denotes the capital stock, and H denotes the number of efficiency units of production. The coefficients of K and H show the percentage of contribution of each factor of production to the gross domestic product. These coefficients always add up to 1. This ensures that the production function exhibits constant returns to scale.
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Recalling some historical detail of the chapter, the rapid growth of Boeing was primarily due to
a. competitive pricing policies b. strong advertising campaigns c. a horizontal merger with McDonnell Douglas d. a vertical merger with McDonnell Douglas e. a conglomerate merger with McDonnell Douglas
_____ is an example of a black market activity
a. Purchasing weapons in an alley b. Purchasing cars from an authorized dealer c. Purchasing furniture from a shop d. Purchasing drugs from a pharmacy