Use the Following Production Function to Answer the Next Questions

question 119

Multiple Choice

Use the following production function to answer the next questions.

-This production function exhibits

• A) diminishing marginal product.
• B) constant marginal product.
• C) increasing marginal product.
• D) increasing returns to capital.
• E) a constant rate of depreciation.

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Definitions:

Isocost Line

A graphical representation showing all possible combinations of inputs that cost the same amount.

Capital

Refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities.

Labor

The physical and mental effort used in the production of goods and services.

Slope

In mathematics and economics, it represents the rate at which a variable changes over the change in another variable, often depicted as a line on a graph.