Suppose the Production of Paved Roadways Can Be Represented as Q

question 93

Multiple Choice

Suppose the production of paved roadways can be represented as q = L^0.5 + K^0.5.Which of the following statements is (are) TRUE?

• A) Labor is subject to diminishing marginal productivity in the short run.
• B) Labor and capital are imperfect substitutes.
• C) The isoquants for paved roadways are convex.
• D) All of the above.

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Definitions:

Perception

The process by which individuals interpret and organize sensation to produce a meaningful experience of the world.

Similarity Error

A type of perception error where individuals inaccurately assess others based on perceived similarities to themselves, often leading to biased decisions.

Contrast Error

A cognitive bias in evaluation or judgment where a person or thing is compared to those recently encountered, rather than assessed on individual merit.

Overweighting

Refers to giving too much importance or consideration to a particular factor or piece of information in decision-making processes.