Assume That Constant Returns to Scale Exists and That N

question 7

Multiple Choice

Assume that constant returns to scale exists and that N and K both decrease by 3%.Given this information,we know that

• A)output (Y)will decrease 6%.
• B)Y will decrease by 3%.
• C)Y will decrease by less than 3%.
• D)the capital-labor ratio (K / N)will decrease.

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Definitions:

Nutrients

Substances that provide the necessary nourishment for organisms to carry out life processes, including vitamins, minerals, carbohydrates, proteins, and fats.

Warning Coloration

Bright and distinctive patterns of color used by certain organisms to signal danger or unpalatability to predators.

Camouflage

Coloration or body form that helps an organism blend in with its surroundings and escape detection.

Competitive Exclusion

A principle stating that two species competing for the same resources cannot coexist permanently if their ecological niches are identical.