If production is given by Q = K^$\alpha$L^B,($\alpha$+ B

Question

If production is given by Q = K^$\alpha$L^B,($\alpha$+ B < 1)doubling both inputs A) more than doubles output. B) exactly doubles output. C) increases output but does not double it. D) leaves output unchanged.

Quizplus · Accepted Answer

According to the production function, doubling both inputs will result in an increase of F1F1F1, S1S1, and P1P1 by a factor of 2. Thus, the factor (F1F1F1S1F1F1F10 + B) will also double. However, since this factor is less than 1, doubling it will not result in a doubling of the output. Therefore, the best choice is C: increasing output but not doubling it.

If Production Is Given by Q = K α\alphaα LB α\alphaα + B < 1)doubling Both Inputs A) More Than Doubles

If Production Is Given by Q = K^$\alpha$L^B $\alpha$ + B < 1)doubling Both Inputs
A) More Than Doubles