If the Exponents in the Production Function Were 0

question 9

Multiple Choice

if the exponents in the production function were 0.30 for x₁ and 0.20 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

• A)decreasing, would not
• B)constant, would not
• C)increasing, would
• D)constant, would
• E)decreasing, would

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Definitions:

Characteristics

distinguishing traits, qualities, or properties of an object, person, or thing.

Statocysts

Sensory organs found in invertebrates that help in detecting gravity and spatial orientation.

Crustaceans

A diverse group of aquatic animals within the arthropod phylum including crabs, lobsters, crayfish, shrimp, and barnacles, characterized by a hard exoskeleton and jointed limbs.

Gravity

The natural force of attraction exerted by a celestial body (such as Earth) on objects that are on or near its surface, drawing them toward the center of the body.