If Production Function Q1 = F(L, K), Which of the Following

question 90

Multiple Choice

If production function q1 = f(L, K) , which of the following production functions illustrates neutral technical progress?

• A)q2 = f(1.25L, 1.25K)
• B)q2 = f(1.25L, K)
• C)q2 = f(L, 1.25K)
• D)q2 = 1.25 ∗ f(L, K)

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Definitions:

Operating Activities

Business activities related to the company's principal revenue-generating operations, including production, sales, and distribution.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating costs, from its total revenues.

Indirect Method

A method used in cash flow statement preparation that starts with net income and adjusts for non-cash transactions to reflect the cash inflows and outflows from operating activities.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.