The Following Is a Cobb-Douglas Production Function: Q = 1

question 26

Multiple Choice

The following is a Cobb-Douglas production function: Q = 1.75K^0.5·L^0.5.What is correct here?

• A) A one-percent change in L will cause Q to change by one percent
• B) A one-percent change in K will cause Q to change by two percent
• C) This production function displays increasing returns to scale
• D) This production function displays constant returns to scale
• E) This production function displays decreasing returns to scale

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Definitions:

Reaction Range

The variation in potential outcomes of a particular phenotype or behavior determined by genetic limits in response to different environmental conditions.

Intelligence

The ability to learn, understand, and apply information, solve problems, and adapt to new situations.

War

A state of armed conflict between different countries or different groups within a country.

Genetic Factors

Hereditary characteristics and traits influenced by genes passed down from parents to offspring, affecting physical and mental development.