|
Title: Suppose an economy has the production function Y = A K1/4 H3/4, where Y denotes total output, A ... Post by: RHCP12 on Dec 19, 2022 Suppose an economy has the production function Y = A × K1/4 × H3/4, where Y denotes total output, A denotes the level of technology, K denotes the physical capital stock, and H denotes the efficiency units of production. Which of the following is TRUE of this economy?
▸ Production in this economy exhibits increasing returns to scale. ▸ Production in this economy exhibits decreasing returns to scale. ▸ Production in this economy exhibits constant returns to scale. ▸ Production in this economy decreases when the price level increases. Title: Suppose an economy has the production function Y = A K1/4 H3/4, where Y denotes total output, A ... Post by: schoolkidchuck on Dec 19, 2022 Content hidden
|