Given That All Countries Have the Same Cobb-Douglas Production Function,i

question 106

Multiple Choice

Given that all countries have the same Cobb-Douglas production function,i.e.Y/N = (K/N) b,a ten-fold difference in per capita income requires a difference in capital per capita by a factor of

• A)10.
• B)10b.
• C)101/b.
• D)b.

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Definitions:

Cournot Equilibrium

A situation in an oligopoly market where each firm chooses its optimal output level assuming the output levels of its competitors are fixed.

Cournot Duopoly

A Cournot Duopoly is a market structure where two firms compete on the amount of output they will produce, each assuming the other's output as given when deciding its own output level.

Cournot Duopoly

A model of competition in which two firms choose their output levels strategically, assuming the output of the other, aiming to maximize profit.

Linear

Describing a relationship or function that can be graphically represented as a straight line, indicating a constant rate of change.