Does It Make Sense to Consider the Returns to Scale

question 20

Multiple Choice

Does it make sense to consider the returns to scale of a production function in the short run?

• A) Yes, this is an important short-run characteristic of production functions.
• B) Yes, returns to scale determine the diminishing marginal returns of the inputs.
• C) No, returns to scale is a property of the consumer's utility function.
• D) No, we cannot change all of the production inputs in the short run.

---

Definitions:

Cash Receipts Journal

A financial journal that records all cash inflows or receipts of a business, including sales cash and account receivables collections.

Incorrectly Recorded

Refers to an error in documenting financial or other records, leading to inaccuracies in the accounting or data management process.

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Company's Balance

The total net worth or financial position of a company at a specific point in time, often reflected in the balance sheet.