For a Production Process That Involves Two Inputs, Capital and Labor

question 68

Multiple Choice

For a production process that involves two inputs, capital and labor, the constant elasticity long-run total cost function defined in linear relationship using logarithms is:

• A) \(\log T C = \log a + b \log Q + c \log w + d \log r\)
• B) \(\log T = \log \mathrm { t } + c \log Q + \mathrm { a } \log w + \mathrm { b } \log r\)
• C) \(T = \log \mathrm { t } + c \log Q + \operatorname { alog } w + \mathrm { b } \log r\)
• D) \(T = \mathrm { t } + c Q + \mathrm { a } w + \mathrm { b } r\)

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Definitions:

Teres Major

A muscle of the upper limb that assists in the adduction and medial rotation of the arm.

Deltoid

A voluminous, triangle-formed muscle encasing the shoulder joint, essential for arm lifting and allowing for the shoulder's motion span.

Pectoralis Major

The pectoralis major is a large chest muscle that contributes to arm flexion, rotation, and the movement of the shoulder.

Pelvic Diaphragm

A muscular sheet at the base of the pelvis, consisting mainly of the levator ani and the coccygeus muscles, which supports pelvic organs.