A Firm Has the Production Function F(x₁, X₂) = (X^b₁

question 42

Multiple Choice

A firm has the production function f(x₁, x₂) = (x^b₁ + x_b²) c, where b > 0 and c > 0. This firm will have

• A)Increasing returns to scale if and only if 2b + c > 1.
• B)Increasing returns to scale if and only if bc > 1.
• C)Increasing returns to scale if and only if b + c > 1.
• D)Constant returns to scale if and only if c = 1.

---

Definitions:

Engagement

The emotional and psychological commitment an employee has towards their organization and its goals.

Employee Attitude

Workers' perspectives, feelings, and behaviors towards their job, colleagues, and the organization.

Alignment Strategy

Alignment strategy refers to the process of ensuring that the goals, processes, and activities of an organization are in sync to achieve its overall objectives.

Performance Metrics

Quantitative and qualitative measures used to evaluate the effectiveness, efficiency, and success of an individual's, team's, or organization's activities.