Let a Firm's Long Run Total Cost Be Described by the Constant

question 47

Multiple Choice

Let a firm's long run total cost be described by the constant elasticity total cost function. The coefficients of the log of the wage and the log of capital in this function should:

• A)add up to one.
• B)be negative.
• C)be of opposite sign.
• D)of indeterminate sign.

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