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

question 2

Multiple Choice

A firm has the production function f(x, y) = x^1.10y¹. This firm has

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

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Definitions:

Goldwater-Nichols Act

A significant restructuring of the United States military's chain of command, passed in 1986 to improve military effectiveness and interoperability.

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Stakeholders

Individuals or groups that have an interest or stake in the outcome of a project, decision, or endeavor.

Maximum Profit

The highest achievable profit under given market conditions, considering all costs and revenue.