A Firm Has a Production Function F(x, Y) = 0

question 12

Multiple Choice

A firm has a production function f(x, y) = 0.70(x^0.80 + y^0.80) ² whenever x > 0 and y > 0. When the amounts of both inputs are positive, this firm has

• A) increasing returns to scale if x + y > 1 and decreasing returns to scale otherwise.
• B) increasing returns to scale.
• C) decreasing returns to scale.
• D) constant returns to scale.
• E) increasing returns to scale if output is less than 1 and decreasing returns to scale if output is greater than 1.

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Definitions:

Urine

A liquid waste product of the body that is excreted by the kidneys and stored in the bladder until it exits the body through the urethra.

Urine Culture

A laboratory test that identifies bacteria in the urine to diagnose urinary tract infections.

Sensitivity Test

A laboratory test used to determine the effectiveness of antibiotics or other antimicrobial agents against bacteria or other pathogens.

First Morning Urine

The first urination after waking up, often used in medical testing as it is more concentrated and can provide more accurate results.