If the Exponents in the Production Function Were 0

question 3

Multiple Choice

if the exponents in the production function were 0.40 for x₁ and 0.40 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

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

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