Consider the CES Production Function $Q = \left[ a L ^ { \frac { \sigma - 1 } { \sigma } } + b K ^ { \frac { \sigma - 1 } { \sigma } } \right] ^ { \frac { \sigma } { \sigma - 1 } }$

question 2

Multiple Choice

Consider the CES production function $Q = \left[ a L ^ { \frac { \sigma - 1 } { \sigma } } + b K ^ { \frac { \sigma - 1 } { \sigma } } \right] ^ { \frac { \sigma } { \sigma - 1 } }$ . This production function exhibits:

• A)decreasing returns to scale.
• B)constant returns to scale.
• C)increasing returns to scale.
• D)either decreasing or constant returns to scale, but more information is needed to determine which one.

---

Definitions:

Managing

The process of dealing with or controlling things or people, often within the context of a business or organization.

Employee Theft

The act of stealing from an employer by an employee, which can include theft of money, time, or company property.

Small Business

A small business is typically an independently owned and operated entity, characterized by limited revenue, fewer employees, and smaller market reach compared to larger businesses.

Functions Of Management

Refers to the core tasks and responsibilities that managers must perform, including planning, organizing, leading, and controlling, to effectively and efficiently coordinate the use of resources to achieve organizational goals.