If the Exponents in the Production Function Were 0

question 25

Multiple Choice

if the exponents in the production function were 0.60 for x₁ and 0.40 for x₂, this production function would exhibit (constant, increasing, decreasing) returns to scale and (would, would not) have diminishing technical rate of substitution.

• A)constant, would not
• B)increasing, would
• C)decreasing, would not
• D)constant, would
• E)decreasing, would

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Definitions:

Reality Principle

A principle in psychoanalytic theory where the ego seeks to satisfy the id's desires in realistic and socially appropriate ways.

Ego

In psychoanalytic theory, the part of the personality responsible for dealing with reality, balancing the demands of the id and superego.

Reality Principle

A psychoanalytic concept that denotes the ability of the mind to assess the external world and act upon it accordingly, often in contrast to the pleasure principle.

Compromise Solution

A compromise solution is a method of resolving a conflict or problem where parties involved make concessions to reach an agreement beneficial to all.