The Following Is Not a Property of the Translog Cost

question 27

Multiple Choice

The following is not a property of the translog cost function:

• A)The constant elasticity cost function is a special case of it.
• B)The average cost may be U-shaped.
• C)It is a good approximation for almost any production function.
• D)It only applies to long run total costs.

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Definitions:

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.

Natural Resources

Assets occurring in nature, such as mineral deposits, timber tracts, oil, and gas

Tangible Assets

Physical assets that hold value, such as land, buildings, vehicles, equipment, and inventory.

Operating Rights

The granted permissions or authorizations for a company to conduct specific operations within a regulatory or legal framework.