The following is a Cobb-Douglas production function: Q = 1.75K0.6L0.5. What is correct here? *       -This production function displays constant returns to scale       -This production function displays increasing returns to scale       -A one-percent change in L will cause Q to change by one percent       -This production function displays decreasing returns to scale   Q2. For studying demand relationships for a proposed new product that no one has ever used before, what would be the best method to use? *       -consumer surveys, where potential customers hear about the product and are asked their opinions       -double log functional form regression model       -ordinary least squares regression on historical data       -market experiments, where the price is set differently in two markets

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Q: Lesson 7- Production Question 9

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