Solve for the necessary amount of energy to produce the specified level of output in each row below using the production function Y=N(1/3)K(1/3)E(1/3)

Units of N	Units of K	Units of E	Output
54	250	nothing	120
54	375	nothing	120
81	250	nothing	120

True or false. "Because of constant returns to scale, in order for output to rise, we must increase our consumption of energy."

A.

True

B.

False

Output can increase without an increase in the use of energy by

substituting capital and/or labor

substituting labor only

substituting capital only

for energy. The text points out that there is widespread agreement among economists that a tax on carbon emissions energy

would

would not

provide an incentive to reduce energy use.

( Solve for the necessary amount of energy to produce the specified level of output in each row below using the production function Y = N(1/3)*(1/3)=(1/3) Units of N Units of K Units of E Output 54 250 120 54 375 120 81 250 120 True or false. "Because of constant returns to scale, in order for output to rise, we must increase our consumption of energy." O A. True B. False ( Solve for the necessary amount of energy to produce the specified level of output in each row below using the production function Y = N(1/3)*(1/3)=(1/3) Units of N Units of K Units of E Output 54 250 120 54 375 120 81 250 120 True or false. "Because of constant returns to scale, in order for output to rise, we must increase our consumption of energy." O A. True B. False