Suppose the production of mp3 players can be represented by the ...

[dbose]

Suppose the production of mp3 players can be represented by the following production function: Which of the following statements is (are) TRUE?
◦ Capital and labor can be substituted for one another.
◦ The marginal productivity of labor falls as labor increases in the short run.
◦ The production function has decreasing returns to scale.
◦ All of the above.

[frre432]

A FREE account is required to view all solutions! Click to Register

Login with Facebook Login with Google Login with Email

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 50% of students answer this correctly

[ahriuashd]

Suppose the production of mp3 players can be represented by the following production function: Which of the following statements is TRUE?
◦ The production function has decreasing returns to scale.
◦ Returns to scale vary with the level of output.
◦ The production function has increasing returns to scale.
◦ The production function has constant returns to scale.

[iceage]

The production function has decreasing returns to scale.

[ahriuashd]

Excellent

[iceage]

Great! Please up vote

[kaid0807]

Suppose the production of mp3 players can be represented by the following production function: The firm currently produces q1 units. If all inputs doubled, the new level of output will equal
◦ 20.4 q1.
◦ 20.8 q1.
◦ 1.6 q1.
◦ 0.8 q1.

[mceravolo]

20.8 q1.