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

---

Definitions:

Ambiguous

Lacking clear definition or form, often leading to confusion or multiple interpretations.

Parol Evidence Rule

is a principle in contract law that prevents parties from presenting extrinsic evidence of conversations, agreements, or documents to alter or contradict the terms of a written contract.

Collateral Promise

A secondary agreement made to take responsibility for another's performance under a contract, often requiring a writing to be enforceable.

Personnel Manager

An individual responsible for overseeing the human resource department of an organization, dealing with staffing, training, and employee welfare.