A Firm Has the Production Function F(x, Y)= X¹

question 36

Multiple Choice

A firm has the production function f(x, y) = x^1.40y¹.This firm has

• A)decreasing returns to scale and diminishing marginal products for factor x.
• B)increasing returns to scale and decreasing marginal product of factor x.
• C)decreasing returns to scale and increasing marginal product for factor x.
• D)constant returns to scale.
• E)None of the above.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net amount of goods and services traded with other countries.

Open-Economy Macroeconomic Model

A model that analyzes an economy that is engaged in international trade and investment flows.

Domestic Investment

The total amount of money invested in the resources within a country's borders, including but not limited to businesses, infrastructure, and technology.

Open-Economy Macroeconomic Model

A framework used to analyze economies that engage in international trade of goods, services, and financial assets.