If a production function is represented as q = L^a*K^b, the long-run average cost curve will be horizontal as long as
A) a + b = 0.
B) a + b = 1.
C) q > 0.
D) L = K.
Answer: a + b = 1.
If a production function is represented as q = L^a*K^b, the long-run average cost curve will be horizontal as long as
A) a + b = 0.
B) a + b = 1.
C) q > 0.
D) L = K.
Answer: a + b = 1.