If a Technological Change Occurs Such That the Production Function

question 118

Multiple Choice

If a technological change occurs such that the production function shifts from q = 10K^0.5 L^0.5 to q = 10.5K^0.3 L^0.5,then the technological change is

• A) both neutral and non-neutral.
• B) neutral.
• C) non-neutral.
• D) Not enough information given.

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Definitions:

Chefs

Professional cooks who are responsible for preparing meals, often specializing in particular cuisines, in restaurants or other establishments.

Marginal Value

Marginal value is the additional satisfaction or utility gained from consuming one more unit of a good or service.

Price Discriminate

The practice of selling the same product to different buyers at different prices based on their willingness or ability to pay.

Demand Curves

A graphical representation showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase, typically downward sloping.