For the standard constant-returns Cobb–Douglas production function \(Q=AK^\alpha L^{1-\alpha}\), with \(A>0,\ K,L>0,\ 0<\alpha<1\), which statements are NOT properties? A. Cobb‐Douglas production function is a homogeneous production function B. Curves representing average and marginal productivity of inputs are not downward sloping C. Marginal productivity of labour and capital in Cobb‐Douglas production function are functions of the capital‐labour ratio D. Iso‐quants of Cobb‐Douglas production functions are positively sloped Choose the correct answer from the options given below:
B and D only
For \(Q=AK^\alpha L^{1-\alpha},\ 0<\alpha<1\), the function is homogeneous of degree 1. Holding the other input fixed, average and marginal products decline as an input increases. Both marginal products can be expressed through \(K/L\), and the isoquant slope is \(-MP_L/MP_K<0\). Therefore B and D are not properties.
Important Questions from Production Function - Teaching
Critical path indicates which one of the following?
Match the items of List - II with List - I ; and choose the correct code :
List - I
(Critical Control Standards)
List - II
(Critical Points
(a) Physical standards (i) Material cost per unit (b) Cost standards (ii) Labour hours per unit of output (c) Revenue standards (iii) Timing of production (d) Program standards (iv) Average sales per customer The relationship between rate of inputs of productive services and the rate of output is known as:
In the short‐run production function, which one of the following is CORRECT?
Match List I with List II
Choose the correct option from the given below:List I List II Branding Strategy Meaning (a) Line Extension (i) New product category and existing brand name (b) Brand Extension (ii) Existing product category and new brand name
(c) Multi Brands (iii) Existing product category and existing brand name
(d) Co-branding (iv) Putting two established brand names of different companies on the same product
