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

question 77

Multiple Choice

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

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

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Definitions:

Inflammation

A biological response to harmful stimuli, characterized by redness, heat, swelling, and pain, as part of the body's defense mechanism.

Above

A term that denotes a location or position higher than or over a specific point.

Beyond

not a specific medical or scientific term, generally meaning farther or outside the range.

Excessive

Used to describe something that is more than necessary, reasonable, or permissible; overly abundant.