Assume the Generic Production Function Q = F (K,L)displays Both

question 24

Multiple Choice

Assume the generic production function Q = f (K,L) displays both decreasing returns to capital (K) and decreasing returns to labor (L) .Then

• A)this production function will certainly display decreasing returns to scale.
• B)this production function will certainly display constant returns to scale.
• C)this production function will certainly display increasing returns to scale.
• D)this production function may display increasing returns to scale.

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Definitions:

Conservation

The understanding that the physical properties of objects, such as the number of items in a cluster or the amount of liquid in a glass, can remain the same even when their form or appearance changes.

Gender Typing

The process by which children learn the abilities, interests, and behaviors associated with being masculine or feminine in their culture.

Masculine

Pertains to qualities, behaviors, and roles traditionally associated with men and boys in a given society.

Feminine

Qualities or attributes traditionally associated with women or considered characteristic of women.