A Firm Has the Production Function F(x, Y) = X¹

question 27

Multiple Choice

A firm has the production function f(x, y) = x^1.40y¹. This firm has

• A) decreasing returns to scale and diminishing marginal products for factor x.
• B) increasing returns to scale and decreasing marginal product of factor x.
• C) decreasing returns to scale and increasing marginal product for factor x.
• D) constant returns to scale.
• E) None of the above.