Consider the Production Function $q = \left( k ^ { \alpha } + l ^ { \alpha} \right) ^ { \beta }$

question 8

Multiple Choice

Consider the production function $q = \left( k ^ { \alpha } + l ^ { \alpha} \right) ^ { \beta }$ . For this function to have diminishing marginal productivities and increasing returns to scale,it must be the case that

• A)α > 1 αβ < 1.
• B)α > 1 αβ > 1.
• C)α < 1 αβ < 1.
• D)α < 1 αβ > 1.

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Definitions:

Workplace

A location or setting where individuals are employed and perform tasks related to their jobs.

Acquiescence Response

A tendency in survey responses where participants agree with statements as presented to them regardless of the content.

Social Desirability

The extent to which test takers tend to respond to items in a manner that presents them in a positive light.

Confident

Feeling or showing certainty about something or possessing self-assurance.