If Y Is Output, K Is Capital, U Is the Fraction

question 78

Multiple Choice

If Y is output, K is capital, u is the fraction of the labor force in universities, L is labor, and E is the stock of knowledge, and the production Y = F(K,(1 - u) EL) exhibits constant returns to scale, then output (Y) will double if:

• A) K is doubled.
• B) K and u are doubled.
• C) K and E are doubled.
• D) L is doubled.

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Definitions:

Mixed Strategy

A situation in game theory where a player chooses among several possible moves according to a probability distribution.

Troops

Military units or forces, especially those organized for land warfare.

Pure Strategies

In game theory, actions or sequences of moves that a player commits to in a strategic setting without randomness.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players, resulting in a situation where no player has anything to gain by changing only their strategy.