The returns to scale in the production function Y = K0.5 L0.5 are:
A. decreasing.
B. constant.
C. increasing.
D. subject to wide fluctuations.
Ans: B. constant.
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The price elasticity of supply is calculated as the
A) percentage change in quantity supplied multiplied by the percentage change in price. B) percentage change in quantity supplied divided by the percentage change in price. C) percentage change in price divided by the percentage change in quantity supplied. D) percentage change in quantity supplied plus the percentage change in price.
Self insurance refers to: the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure
a. starting one's own insurance company b. buying insurance from a not for profit entity c. setting aside fund to pay for medical care expenses instead of buying insurance d. none of these e. both a and b