The scale- elasticity of output measures:
A) the slope of the production function.
B) the responsiveness of factor supply to a change in factor price.
C) responsiveness of output to a change in the scale of production.
D) the degree to which inputs can be substituted as output changes.
Correct Answer:
Verified
Q4: For a firm that experiences decreasing returns
Q5: A feasible input bundle lies:
A)above or on
Q6: Long run total costs are always:
A)a function
Q7: Holding output constant, the MRTS is:
A)the ratio
Q8: When returns to scale are decreasing, long
Q10: The Marginal Rate of Technical Substitution refers
Q11: An isocost line is defined as the
Q12: Fixed proportions production functions always have:
A)varying returns
Q13: If a firm is producing at minimum
Q14: The Marginal Rate of Technical Substitution diminishes
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