For the Cost Function $C = q ^ { \cdot 8 }~~ v ^ { .4} ~~w ^ { .6 }$

question 20

Multiple Choice

For the cost function $C = q ^ { \cdot 8 }~~ v ^ { .4} ~~w ^ { .6 }$ consider the following statements:
I.The function exhibits decreasing average cost.
II.The function is homogeneous of degree 1 in v and w.
III.The elasticity of marginal cost with respect to v exceeds the elasticity with respect to w.

• A)None is true.
• B)All are true.
• C)Only I is true.
• D)Only I and II are true.

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Definitions:

Somatotropin Hormone

Another term for growth hormone, a substance produced by the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans.

Correct Abbreviation

A shortened form of a word or phrase used correctly in a specific context.

Vasopressin

A hormone released by the pituitary gland that regulates water retention in the kidneys and increases blood pressure.

Hyposecretion

A condition where a gland produces less of its hormone than the normal level, potentially leading to various disorders or symptoms.