The production function will shift up as a result ofResponsesA increasing returns to labor.increasing returns to labor.B diminishing returns to labor.diminishing returns to labor.C an increase in capital input.an increase in capital input.D a decrease in capital input.

Which of the following causes the production function to shift up?ResponsesA an increase in the capital stock faster than the increase in the labor forcean increase in the capital stock faster than the increase in the labor forceB an increase in the capital stockan increase in the capital stockC a decline in the labor forcea decline in the labor forceD a technological improvement

If the slope of a total production function decreases as one input increases, the firm's underlying production function exhibits:a.increasing returns to scale.b.constant returns to scale.c.decreasing returns to a factor input.d.decreasing returns to scale.

Question 1 Consider the production function:F (L, K) = L13 K 23 .Suppose the wage rate (price per unit of labour), w, is 1 and, the capital rental rate (priceper unit of capital), r, is 2.(a) Does this production function exhibit increasing, decreasing or constant returns toscale? Justify your answer.

The graph above showsResponsesA increasing returns to labor.increasing returns to labor.B decreasing returns to labor.decreasing returns to labor.C increasing returns to capital. increasing returns to capital. D decreasing returns to capital.

In the short run, if a firm increases its production beyond a certain point, it may experience:Question 3Answera.Diminishing returns to the variable input.b.Increasing returns to scale.c.Constant returns to scale.d.A shutdown.