For a Production Process That Involves Two Inputs, Capital and Labor

question 17

Multiple Choice

For a production process that involves two inputs, capital and labor, the constant elasticity long-run total cost function defined in linear relationship using logarithms is

• A) log TC = log a + b log Q + c log w + d log r
• B) log T = log t + c log Q + a log w + b log r
• C) T = log t + c log Q + a log w + b log r
• D) T = t + cQ + aw + br

---

Definitions:

Special Order

A request for a product that is not regularly stocked by a retailer, often requiring a special purchase from the supplier.

Manufacturer

A person or company that makes goods for sale, typically on a large scale.

Widespread Basis

A distribution or operational strategy that targets a broad or extensive range of areas, markets, or audiences.

Specialty Product

Products that are unique, high-quality, or branded, which consumers seek out and purchase with specific intention.