Suppose the Production Function for Good Q Is Given by Q

question 15

Multiple Choice

Suppose the production function for good q is given by q = 3K + 2 L where K and L are capital and labor inputs.Consider three statements about this function:
I.The function exhibits constant returns to scale.
II.The function exhibits diminishing marginal productivities to all inputs.
III.The function has a constant rate of technical substitution.
Which of these statements is true?

• A) All of them.
• B) Only I.
• C) I and II but not III.
• D) I and III but not II.

---

Definitions:

Critical Listening

A listening mode focused on evaluating and analyzing the content of a message for accuracy and coherence.

Logic

The study of reasoning and argumentation in seeking to understand and analyze the principles that govern thought and rationality.

Evidence

Information or data presented in support of an assertion, claim, or case.

Listening Process

The active and conscious effort to understand, interpret, and evaluate what is being heard.