If Output Is Described by the Production Function Y =

question 104

Multiple Choice

If output is described by the production function Y = AK ^0.2L^0.8, then the production function has:

• A) constant returns to scale.
• B) diminishing returns to scale.
• C) increasing returns to scale.
• D) a degree of returns to scale that cannot be determined from the information given.

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Definitions:

Products

Substances that are formed as a result of a chemical reaction.

Energy Factor

A term that could relate to various contexts, but generally refers to a measure or element that significantly influences the energy efficiency or energy required for processes or systems.

Chemical Reactions

Processes that involve rearrangement of the molecules or atomic structure of substances, resulting in new products.

Body Temperature

The measurement of the warmth or coldness of the human body, typically maintained around 37°C (98.6°F) under normal conditions.