Question: A firm has the production function q = f(L, K) = L0.5 + Ko.5 This firm has: O None of the above. O constant returns

A firm has the production function q = f(L, K) = L0.5 + Ko.5 This firm has: O None of the above. O constant returns to scale decreasing returns to scale increasing returns to scale O increasing marginal product

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1. The concepts that are used to describe social situations are mental constructions.

The facts rule: We have a tendency to have more confidence in information that is documented with figures than information that isnt.

The permanence rule: We tend to have more confidence in information that is of a more permanent nature than information that is of a temporary nature.