Estimation of a Production Function from the Linear Equation Q

question 44

Multiple Choice

Estimation of a production function from the linear equation Q = a + bL + cK,assumes that the law of diminishing returns _____.

• A)applies to labor only
• B)applies to capital only
• C)applies to both capital and labor
• D)does not apply to either input

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Definitions:

Principal Liability

refers to the legal responsibility of a principal (an individual or entity) for the actions of their agents or representatives conducted within the scope of their agency or employment.

Principal/Employer-Agent/Employee Relationship

Refers to the legal bond between an employer who delegates tasks, and an employee who performs these tasks on the employer's behalf.

Negotiable Instrument

A written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument; an acceptable medium for exchanging value from one person to another.

Representative Capacity

Acting on behalf of someone else or a group in a legal or official matter.