A firm has the production function f(x, y) = x³yº.3, where a>0.7. This firm has Select one: O a. decreasing returns to scale and increasing marginal product for factorx and y. b. None of the above. c. increasing returns to scale and diminishing marginal product of factor x. d. constant returns to scale. e. decreasing returns to scale and diminishing marginal products for factor y.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
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A firm has the production function f(x, y) = x®y0.3, where a>0.7. This firm has
Select one:
a. decreasing returns to scale and increasing marginal product for factor x and y.
b. None of the above.
c. increasing returns to scale and diminishing marginal product of factor x.
d. constant returns to scale.
e. decreasing returns to scale and diminishing marginal products for factor y.
Transcribed Image Text:A firm has the production function f(x, y) = x®y0.3, where a>0.7. This firm has Select one: a. decreasing returns to scale and increasing marginal product for factor x and y. b. None of the above. c. increasing returns to scale and diminishing marginal product of factor x. d. constant returns to scale. e. decreasing returns to scale and diminishing marginal products for factor y.
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