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Let a firm's production function be Q=100(aL+bK). The production function then becomes Q=500(
aL+bK). Which of the following statements is true? A. Neutral technological progress has
occurred. B. Labor-saving technological progress has occurred. C. Capital-saving technological
progress has occurred. D. Economies of scale have increased.

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Let a firms production function be Q100aL+bK The produc.pdf

  • 1. Let a firm's production function be Q=100(aL+bK). The production function then becomes Q=500( aL+bK). Which of the following statements is true? A. Neutral technological progress has occurred. B. Labor-saving technological progress has occurred. C. Capital-saving technological progress has occurred. D. Economies of scale have increased.