The table below shows various values of labour (L), capital (K), and technology (T) for Economies A, B, and C. In each case, the aggregate productionfunction takes the following form: Y = T x KLEconomy AEconomy BEconomy CL.KLK IL KTon100501005010050211050110551105541205021206012060130 50130652130658.140502.1407014070101505015075150 7512TABLE 25-4Refer to Table 25-4. The production function that applies to Economies A, B, and C displaysSelect one:O a. constant returns to scale.O b. diminishing marginal returns to capital.O c increasing returns to scale.O d. increasing marginal returns to capital.O e. Both C and D are correct.62.

Production function : Y = T ×KL constant returns to scale = When we increase all the inputs by a…

The table below shows various values of labour (L), capital (K), and technology (T) for Economies A, B, and C. In each case, the aggregate productio function takes the following form: Y = T x KL Economy A Economy B Economy C L K L K T L K T 100 50 100 50 100 50 2 110 50 110 55 110 55 120 50 120 60 120 60 130 50 2 130 65 2 130 65 8 140 50 2 140 70 2 140 70 10 150 50 2 150 75 2 150 75 12 TABLE 25-4 Refer to Table 25-4. The production function that applies to Economies A, B, and C displays Select one: O a. constant returns to scale. O b. diminishing marginal returns to capital. O c. increasing returns to scale. O d. increasing marginal returns to capital. O e. Both C and D are correct.

The table below shows various values of labour (L), capital (K), and technology (T) for Economies A, B, and C. In each case, the aggregate productio function takes the following form: Y = T x KL Economy A Economy B Economy C L K L K T L K T 100 50 100 50 100 50 2 110 50 110 55 110 55 120 50 120 60 120 60 130 50 2 130 65 2 130 65 8 140 50 2 140 70 2 140 70 10 150 50 2 150 75 2 150 75 12 TABLE 25-4 Refer to Table 25-4. The production function that applies to Economies A, B, and C displays Select one: O a. constant returns to scale. O b. diminishing marginal returns to capital. O c. increasing returns to scale. O d. increasing marginal returns to capital. O e. Both C and D are correct.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The table below shows various values of labour (L), capital (K), and technology (T) for Economies A, B, and C. In each case, the aggregate production
function takes the following form: Y = T x KL
Economy A
Economy B
Economy C
L.
K
LK I
L K
T
on
100
50
100
50
100
50
2
110
50
110
55
110
55
4
120
50
2
120
60
120
60
130 50
130
65
2
130
65
8.
140
50
2.
140
70
140
70
10
150
50
150
75
150 75
12
TABLE 25-4
Refer to Table 25-4. The production function that applies to Economies A, B, and C displays
Select one:
O a. constant returns to scale.
O b. diminishing marginal returns to capital.
O c increasing returns to scale.
O d. increasing marginal returns to capital.
O e. Both C and D are correct.
6
2.

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