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

question 38

Multiple Choice

A firm has the production function f(x, y) = x^1.40y^0.90. This firm has

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

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Definitions:

Production Processes

The methods and operations involved in the transformation of raw materials into finished goods or products.

Overt Behavior

Refers to actions and behaviors that are observable and measurable, as opposed to inner processes like thoughts and feelings.

Rigid Memory

A memory condition characterized by inflexibility, where past experiences overly dictate current behavior and thoughts.

Vicariously

Experiencing something through another person's actions by imagining what it would be like to be in their situation.