Let a Firm's Long Run Total Cost Be Described by the Constant

question 47

Multiple Choice

Let a firm's long run total cost be described by the constant elasticity total cost function. The coefficients of the log of the wage and the log of capital in this function should:

• A)add up to one.
• B)be negative.
• C)be of opposite sign.
• D)of indeterminate sign.

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Definitions:

Commercial Banks

Financial institutions that accept deposits, offer various loans, and provide other financial services, like wealth management and currency exchange.

Savings And Loan

Financial institutions that primarily engage in accepting savings deposits and making mortgage loans.

Reserve Requirements

Criteria set by central banks for the minimal amount of reserves that must be kept by banks against the deposits they hold.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.