For This Question,assume That There Are Decreasing Returns to Capital,decreasing

question 65

Multiple Choice

For this question,assume that there are decreasing returns to capital,decreasing returns to labor,and constant returns to scale.Now suppose that both capital and labor decrease by 5%.Given this information,we know that output (Y) will

• A)not change.
• B)decrease by less than 5%.
• C)decrease by 5%.
• D)decrease by more than 5% but less than 10%.
• E) none of the above

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Definitions:

Railway Labor Act

A U.S. law enacted in 1926 that seeks to avoid any interruption to commerce or to the operation of any carrier, facilitating labor relations in the railway and airline industries.

Trucking Industry

A sector encompassing businesses that provide transportation of goods by road, including both long-haul and local deliveries.

Clayton Act

An antitrust law enacted in the U.S. to promote fair competition and prevent monopolies, with provisions protecting labor unions and their activities.

Sherman Antitrust Act

A landmark federal statute passed in the United States to promote economic competition by prohibiting monopolies and restrictive trade practices.