Let the Production Function Be Q = AL^aK^b

question 125

Multiple Choice

Let the production function be q = AL^aK^b. The function exhibits decreasing returns to scale if

• A)a + b = 1.
• B)a + b > 1.
• C)a + b < 1.
• D)Cannot be determined with the information given.

---

Definitions:

Problem-solving Reports

Documents designed to address and provide solutions to specific issues or challenges.

Sentence Transitions

Words or phrases used to link sentences and paragraphs together smoothly, ensuring coherence in writing.

Connecting Network

A system or infrastructure that links different entities for communication or data exchange.

Readability

The measure of how easy it is to read and understand a text, influenced by factors such as language, structure, and layout.