The production function Q = 10K0.3L0.7 exhibits:
a. Economies of scope.
b. Increasing returns to scale.
c. Constant returns to scale.
d. Decreasing returns to scale.
e. Diseconomies of scale.
The slope of an isoquant is called the:
a. marginal product of capital.
b. marginal product of labor.
c. marginal rate of technical substitution.
d. value of the marginal product of a variable input.
e. Answers a and b are correct.
The difference between economic cost and accounting cost is:
a. fixed cost.
b. variable cost.
c. explicit cost.
d. implicit cost.
e. None of the above.
Dear Student Please find... View the full answer