Question

For a given short-run production, function _________________.

• A. technology is assumed to change as capital stock changes.
• B. technology is assumed to change as the capital labor input changes.
• C. technology is considered to be constant for a given production function relationship
• D. technology is assumed to change positively until diminishing return set in and then it changes in the other direction.

Answer 1

The correct option is C technology is considered to be constant for a given production function relationship

Technology is kept constant because it becomes easier for economists to analyse the implication of a change in labour and capital. Most importantly, technology does not change very frequently and generally changes over the long term. Hence, in the long run production function it is variable.