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

question 6

Multiple Choice

A firm has the production function f(x, y) = x^1.40y^1.90. This firm has

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

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Definitions:

Time Sampling Error

A statistical error that occurs when a sample is collected at a specific time that is not representative of the overall population or phenomenon.

Measurement Error Sources

Factors that contribute to the difference between the measured value and the true value of what is being measured.

Estimating Reliability

The process of calculating or predicting the consistency of a test's results through various statistical methods.

Correlation Relationships

The statistical measure that describes the extent to which two variables change together, indicating a potential relationship but not causation.