A firm's production function is initially Q = KL .Over time, the production function changes to Q = K²L² (Assume that L > 1 and K > 1) Which one is correct for the situation? No technological progress, only change of function Technological progress Cannot comment on progress

A firm's production function is initially Q = KL .Over time, the production function changes to Q = K²L² (Assume that L > 1 and K > 1) Which one is correct for the situation? No technological progress, only change of function Technological progress Cannot comment on progress

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.8P

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Answer the attached question

A firm's production function is initially Q = KL .Over time, the production function
changes to Q = K²L² (Assume that L > 1 and K > 1)
Which one is correct for the situation?
No technological progress, only change of function
Technological progress
Cannot comment on progress

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