The fact that the production function has constant elasticity of scale means tha O If we get 10% more workers, output goes up by 10% O If we get 10% more workers, 10% more physical capital, 10% more human capital, and 10% more natural resources, output goes up by 10% O Output always goes up by 10% O Output always goes up by less than 10% OIt is impossible to determine how much output will go up without measuring the amount of elastic produced in a particular economy.

The fact that the production function has constant elasticity of scale means tha O If we get 10% more workers, output goes up by 10% O If we get 10% more workers, 10% more physical capital, 10% more human capital, and 10% more natural resources, output goes up by 10% O Output always goes up by 10% O Output always goes up by less than 10% OIt is impossible to determine how much output will go up without measuring the amount of elastic produced in a particular economy.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.9P

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Question

The fact that the production function has constant elasticity of scale means that
O If we get 10% more workers, output goes up by 10%
O If we get 10% more workers, 10% more physical capital, 10% more human
capital, and 10% more natural resources, output goes up by 10%
O Output always goes up by 10%
O Output always goes up by less than 10%
Olt is impossible to determine how much output will go up without
measuring the amount of elastic produced in a particular economy.

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