With a Cubic Production Function of the Form $Q = a K ^ { 3 } L ^ { 3 } + b K ^ { - 2 } L ^ { 2 }$

question 5

Multiple Choice

With a cubic production function of the form $Q = a K ^ { 3 } L ^ { 3 } + b K ^ { - 2 } L ^ { 2 }$ ,in order for the average and marginal product functions to have their usual theoretical properties,it must be the case that

• A)a < 0,b > 0
• B)a > 0,b < 0
• C)a < 0,b < 0
• D)a > 0,b > 0

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Definitions:

ROG

Depending on context, can refer to Receipt of Goods, indicating the time when goods are received and payment obligations begin.

Outstanding Balance

The amount of debt, or loan, that has not yet been repaid. It can change daily due to interest and payments.

Invoice

A detailed bill showing goods sold or services provided, along with the amounts due for payment.

Payment

The transfer of money, goods, or services in exchange for a product, service, or to fulfill a legal obligation such as a debt.