Suppose a Firm's Production Function Can Be Specified As $Q = 10 K L$

question 60

Multiple Choice

Suppose a firm's production function can be specified as $Q = 10 K L$ . This firm's cost function exhibits

• A) economies of scale
• B) diseconomies of scale
• C) neither diseconomies nor economies of scale.
• D) economies of scale for output levels less than some level, \(Q _ { 1 } = 1 / 4\), and diseconomies of scale thereafter.

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Definitions:

Heirs

Individuals legally entitled to inherit a deceased person's property or title.

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A legal document that lets people specify their personal, emotional, and spiritual needs in addition to medical wishes in case they become unable to communicate.

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