Suppose the Production of DVD Players Can Be Represented by the Following

question 97

Multiple Choice

Suppose the production of DVD players can be represented by the following production function: q = L^0.4K^0.4. Which of the following statements is (are) TRUE?

• A)The production function has decreasing returns to scale.
• B)The marginal productivity of labor falls as labor increases in the short run.
• C)Capital and labor can be substituted for one another.
• D)All of the above.

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