Let a Firm's Production Function Be $Q = 100 ( a L + b K )$

question 99

True/False

Let a firm's production function be $Q = 100 ( a L + b K )$ . The production function then becomes $Q = 500 ( a L + b K )$ . Neutral technological progress has occurred.

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Definitions:

Rationalize

The process of eliminating radicals from the denominator of a fraction or complex numbers from the denominator.

Denominator

The lower segment of a fraction representing the number of parts into which the total is split.

Rationalize

A method in mathematics used to eliminate the radical (such as a square root) from the denominator of a fraction.

Numerator

The top number in a fraction that indicates how many parts of a whole are being considered.