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
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
Chapter10: Cost Functions
Section: Chapter Questions
Problem 10.4P
Related questions
Question
Q1.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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