Consider the CES Production Function

question 16

Multiple Choice

Consider the CES production function .This production function exhibits

• A) decreasing returns to scale.
• B) constant returns to scale.
• C) increasing returns to scale.
• D) either decreasing or constant returns to scale, but more information is needed to determine which one.

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Definitions:

Neurons

Specialized nerve cells that convey information to other neurons, muscles, or glands.

Human Evolution

The lengthy process of change by which people originated from apelike ancestors, characterized by developments in brain size, locomotion, and tool use.

Coexisted

The act or state of living or existing at the same time or in the same place with another or others.

Neanderthals

An ancient human species distinguished by their survival skills in Ice Age Europe, contributing to the genetic makeup of modern humans through interbreeding.