The Given Production Function Exhibits Which of the Following

question 50

Multiple Choice

The given production function exhibits which of the following?

• A) constant returns to scale - for every 100% increase in input, there is a 100% increase in output.
• B) decreasing returns to scale - for every 100% increase in input, there is a less than 100% increase in output.
• C) decreasing returns to scale - for every 100% increase in input, there is a .425% increase in output
• D) increasing returns to scale - for every 100% increase in input, there is a 675% increase in output
• E) increasing returns to scale - for every 100% increase in input, there is a 425% increase in output.

---

Definitions:

SUTA Payable

A liability account in the general ledger that records amounts owed to the state unemployment insurance program, to be paid by employers.

Social Security Tax

A payroll tax paid by employees and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Time Card

A record of the hours worked by an employee, used to calculate payroll and ensure compliance with labor laws.

Internal Control

Processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.