In an economy, if three-fourths of national income goes to labor, and one-fourth to capital stock, the Cobb-Douglas production function for this economy will be:
A) Y = A 1/4 K 3/4 L B) Y = A K4 L3
C) Y = A K1/4 L3/4 D) Y = A K1/3 L2/3
Question 2
Refer to the table above. After applying the second bag of fertilizer, the farmer experienced
A) constant returns. B) diminishing returns.
C) increasing returns. D) negative returns.
