Given a Production Function Q = 3LK, We Can Say

question 61

Multiple Choice

Given a production function Q = 3LK, we can say that

• A) this production function is not Cobb-Douglas.
• B) this production function is Cobb-Douglas and exhibits decreasing returns to scale.
• C) this Cobb-Douglas production function does not exhibit a constant elasticity of substitution.
• D) this production function is Cobb-Douglas and exhibits increasing returns to scale.

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Definitions:

Price of Earplugs

The amount of money required to purchase a set of earplugs, often dependent on brand, quality, and quantity.

Net Change

Net change refers to the difference in the closing price of a stock, bond, commodity, or index on a given day compared to the closing price on the previous trading day.

Utility Function

A mathematical representation of how different bundles of goods are ranked according to their utility or satisfaction provided to the consumer.

Equivalent Variation

A measure in economics that indicates the amount of money a consumer would need to reach their initial utility level after a price change.