Constant Returns to Scale in the Matching Function Means That $e^{xm(Q,A)}$

question 7

Multiple Choice

Constant returns to scale in the matching function means that, given any constant x > 0,

• A) m(xQ, xA) = xm(Q,A).
• B) m(xQ, xA) > xm(Q,A).
• C) m(xQ, xA) < xm(Q,A).
• D) m(xQ, xA) = \(e^{xm(Q,A)}\).
• E)m(xQ, xA) = \( \frac{1}{x} \) m(Q,A).

---

Definitions:

Cost of Goods Sold

Cost of goods sold represents the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Finished Goods Inventory

Finished and market-ready products still awaiting purchase.

Cost of Goods Available for Sale

The total cost of a company's inventory at the beginning of the period plus the cost of any goods produced or purchased during the period.

Direct Materials Cost

The cost of raw materials that can be directly traced to the production of goods.