Scenario 7.3: Use the Production Function: Q = 4L^1/2K^1/2

question 123

Multiple Choice

Scenario 7.3:
Use the production function: Q = 4L^1/2K^1/2.
-Refer to Scenario 7.3. Suppose that your firm decides to double its output to 400. To achieve this level of output the firm will have to:

• A) exactly double its inputs.
• B) more than double its inputs.
• C) less than double its inputs.

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Commodity

A basic good used in commerce that is interchangeable with other commodities of the same type; common examples include grains, gold, beef, oil, and natural gas.

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Business risks refer to the exposure a company or organization has to factors that will lower its profits or lead it to fail.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a U.S. law enacted in 2002 to protect investors from fraudulent accounting activities by corporations.