The Production Function $Q ( L , K , M ) = 25 K ^ { 0.5 } L ^ { 0.5 } M ^ { 0 .5 }$

question 49

Multiple Choice

The production function $Q ( L , K , M ) = 25 K ^ { 0.5 } L ^ { 0.5 } M ^ { 0 .5 }$ 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.

---

Definitions:

Test Statistic

A calculated value from sample data used to test a hypothesis against a null hypothesis.

Independent Samples

Two or more groups of samples that are collected from separate populations and are not related or paired in any way.

Significance Level

The threshold below which a p-value results in the rejection of a null hypothesis, indicating statistical significance; commonly set at 0.05 or 5%.

Population Locations

Refers to the geographical distribution or positioning of individuals within a specified area.