A Production Function with Constant Returns to Scale for Capital

question 26

Multiple Choice

A production function with constant returns to scale for capital alone implies that

• A)there are increasing returns to scale for all factors of production taken together
• B)if all inputs are doubled then output will more than double
• C)smaller firms are more efficient than larger firms
• D)technological advances cannot take place
• E)both A and B

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Definitions:

Job Environment

The physical and psychological conditions under which employees work, including factors such as office layout, culture, and safety.

Physiological Capabilities

The natural functions and activities of the body, including its ability to perform physical tasks, adapt, and respond to environmental demands.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity and uncertainty.

Positive Attitudes

Mindsets or dispositions characterized by optimism and constructive thinking in individuals.