Suppose the Production Function for Good Q Is Given by Q

question 28

Multiple Choice

Suppose the production function for good q is given by q = 3K + 2 L where K and L are capital and labor inputs.Consider three statements about this function: Which of these statements is true?
I.The function exhibits constant returns to scale.
II.The function exhibits diminishing marginal productivities to all inputs.
III.The function has a constant rate of technical substitution.

• A)All of them.
• B)None of them.
• C)I and II but not III.
• D)I and III but not II.
• E)only I.

Recognize the examples of firms and industries subject to antitrust and regulatory scrutiny.

Identify key regulatory and antitrust policies and their objectives.

Comprehend the mechanisms and challenges of enforcing antitrust laws in modern markets.

Acknowledge the historical and contemporary examples of antitrust cases and their outcomes.

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Definitions:

Overhead Costs

Expenses not directly attributed to the production of specific goods or services, such as rent, utilities, and office expenses.

Direct Labor Hours

The total hours worked directly on the production of goods or services, used in calculating the labor cost of products.

Allocation Base

A measure or statistics used to determine how to distribute indirect costs to various cost objects in a way that is equitable and rational.

Overhead Costs

Indirect expenses related to the general operation of a business, such as administrative salaries, rent, and utilities, that cannot be directly attributed to a specific product or service.