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

question 56

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 TRUE?

• A)The production function has decreasing returns to scale.
• B)The production function has increasing returns to scale.
• C)The production function has constant returns to scale.
• D)Returns to scale vary with the level of output.

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Definitions:

Flux Leakage

The number of magnetic flux lines that radiate into space and do not cut through the conductors of an inductor or secondary winding of a transformer.

Magnetizing Flux

The magnetic field generated in a material, or space, by the flow of electric current or by magnetization.

Flux Coupling

The process or degree to which magnetic lines of force pass from one component to another, such as in transformers.

Flux Reactance

The opposition that inductance offers to alternating current due to the magnetic flux linkage.