Suppose the Production Function for a Certain Device Is Q

question 83

Multiple Choice

Suppose the production function for a certain device is q = L + K.If a labor-saving technical change has occurred,which of the following could be the new production function?

• A) q = L + 5K
• B) q = 5 ∗ (L + K)
• C) q = 5L + K
• D) All of the above are possible.

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Definitions:

Tutoring

The act of providing one-on-one academic instruction to enhance a student's understanding of a specific subject.

Total Profit

The total income of a business after all expenses and costs have been subtracted from total revenue.

Willingness to Pay

The maximum price a consumer is prepared to pay for a good or service, reflecting its perceived value.

Marginal Benefit

The extra pleasure or benefit gained from the consumption of one more unit of a good or service.