(Appendix) Which of the Following Production Functions Exhibits Increasing Returns

question 36

Multiple Choice

(Appendix) Which of the following production functions exhibits increasing returns to scale?

• A)Q = K^1/2L^l/2
• B)Q = K^l/2L^2/3
• C)Q = K^l/4L^l/3
• D)Q = K/L

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Definitions:

Agency Relationship

represents a legal arrangement where one party, the agent, acts on behalf of another party, the principal, in dealing with third parties.

Express Authority

Explicitly given power or authority to an agent or representative by a principal to perform specific acts or functions on their behalf.

Apparent Authority

A doctrine in contract law that allows a third party to hold a principal liable for the acts of an agent, if the principal's actions lead the third party to reasonably believe that the agent is authorized.

Settlement Approval

The process by which a court reviews and approves a settlement agreement between parties in a lawsuit.