A Firm Has the Production Function F(x, Y)=x¹

question 31

Multiple Choice

A firm has the production function f(x, y) =x^1.40y^0.90.This firm has

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

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Definitions:

Market

An area or arena in which commercial dealings are conducted.

Pricing Objectives

Pricing objectives are the goals a company aims to achieve through its pricing strategies, such as maximizing profit, increasing market share, or targeting a specific market segment.

Components

Fundamental parts or elements that combine to form a complex system, mechanism, or product.

Horizontal Price Fixing

Horizontal price fixing occurs when companies at the same level of the supply chain agree to set prices or other market conditions, reducing competition.