Suppose the Production of Mp3 Players Can Be Represented by the Following

question 106

Multiple Choice

Suppose the production of mp3 players can be represented by the following production function: q = L^0.4K^0.4.Which of the following statements is (are) TRUE?

• A) The production function has decreasing returns to scale.
• B) The marginal productivity of labor falls as labor increases in the short run.
• C) Capital and labor can be substituted for one another.
• D) All of the above.

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Definitions:

Blood Pressure

The force exerted by circulating blood upon the walls of blood vessels, typically measured to assess heart health.

Catharsis

Emotional release. The catharsis hypothesis maintains that “releasing” aggressive energy (through action or fantasy) relieves aggressive urges.

Emotional Release

The process of letting go of pent-up emotions, often leading to a sense of relief or catharsis.

Disturbance

An interruption or disruption in the usual condition, process, or state of a system or environment.