A Production with the Form Q = 150L

question 31

Multiple Choice

A production with the form Q = 150L^.75 K^.50 will have __________ in the long run.

• A) increasing returns to scale
• B) decreasing returns to scale
• C) constant returns to scale
• D) diminishing returns to the variable input

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Definitions:

Robinson-Patman Act

A United States federal law that aims to prevent anticompetitive practices by producers, specifically price discrimination.

Price Discrimination

occurs when a seller charges different prices to different buyers for goods of like grade and quality, without justification.

Discriminatory Price

A pricing strategy where different prices are charged for the same product or service in different markets or to different segments of consumers without a corresponding difference in cost.

Clayton Act

An antitrust law in the United States that prohibits certain actions leading to anti-competitiveness, such as price discrimination and exclusive deals.