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

question 15

Multiple Choice

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

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

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