Economics MCQ Questions and Solutions with Explanations | Commerce
Economics MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Economics MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-2 section-9
If the MRSxy (Marginal Substitution Rate) for consumer A is greater than that of MRSxy (Marginal Substitution Rate) of B, then profit for consumer A will be assuming that
A production function expressed as
Q = A [αK-β + (1 - α)L-β]-1/β
Or
Q = A [αL-β + (1 - α)K-β]-1/β
When A > 0, 0 < α < 1 and β > -1
Where L = labour, K = Capital and A, α and β are three parameters is called
