QUESTION 12With the production function Yt A,KLif we double2/3we get an increasing returns production.OA. capital and the stock of ideasO B. capital and laborOC. capitalO D.labor and the stock of ideasO E. capital, labor, and the stock of ideasR.DGH.BM.WinAlControlAl

Given: Yt=AtKt13Lt23where,A=Stock of ideaK=CapitalL=Labor Since A is given as stock of ideas, this…

2/3 With the production function Y A+KL,if we double, we get an increasing returns production. OA. capital and the stock of ideas B. capital and labor OC. capital OD. labor and the stock of ideas OE. capital, labor, and the stock of ideas

2/3 With the production function Y A+KL,if we double, we get an increasing returns production. OA. capital and the stock of ideas B. capital and labor OC. capital OD. labor and the stock of ideas OE. capital, labor, and the stock of ideas

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 8PA

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Factors of Production

Factors of production – in simple words means the factors that are used for producing any product or service. This includes the resources which are necessary for the manufacturing of products. Factors of production are also known as the building blocks of the economy.

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