Author Question: Let the production function be q = ALaKb. Returns to scale are equal to A) a b. B) a + b. C) ... (Read 149 times)

Alainaaa8 · **on:** Jul 1, 2018

Let the production function be q = ALaKb. Returns to scale are equal to

A) a b.
B) a + b.
C) La + Kb.
D) A L.

Question 2

There are two consumers in the market, Jack and Jane. Each have some coffee and candies (coffee on the horizontal axis). Jack's MRS of candies for coffee is 3. Jane's MRS of candies for coffee is 3.

Which one of the following statements is incorrect? A) This allocation is on the contract curve.
B) This can be a competitive equilibrium.
C) This allocation is Pareto efficient.
D) We can reallocate goods so as to make one person better off without harming another.

ebonylittles · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

B

Answer to Question 2

D

Alainaaa8 · **Reply #2 on:** Jul 1, 2018

Correct answers!

ebonylittles · **Reply #3 on:** Jul 1, 2018

Great! Please up vote

Author Question: Let the production function be q = ALaKb. Returns to scale are equal to A) a b. B) a + b. C) ... (Read 149 times)

Alainaaa8

Let the production function be q = ALaKb. Returns to scale are equal to A) a b. B) a + b. C) ...

ebonylittles

Let the production function be q = ALaKb. Returns to scale are equal to A) a b. B) a + b. C) ...

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Alainaaa8

Let the production function be q = ALaKb. Returns to scale are equal to A) a b. B) a + b. C) ...

ebonylittles

Let the production function be q = ALaKb. Returns to scale are equal to A) a b. B) a + b. C) ...