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

question 94

Multiple Choice

Let the production function be q = AL^aK^b.Returns to scale are equal to

• A) a ∗ b.
• B) a + b.
• C) L^a + K^b.
• D) A ∗ L.

---

Definitions:

Maturity Date

The specified date on a financial instrument when the principal amount must be repaid or when an investment reaches its full value and can be redeemed.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Past-Due Account

A past-due account is a financial account that has not been paid by the due date, often leading to penalties or interest charges.

Note Receivable

A financial asset representing a written promise for the future receipt of cash, indicating that one party owes another party a specific sum.