An Aggregate Production Function,with Both Capital and Labour Factor Inputs,exhibits

question 126

Multiple Choice

An aggregate production function,with both capital and labour factor inputs,exhibits constant returns to scale when a 1% increase in labour input

• A)produces a 1% increase in output.
• B)along with a 1% increase in capital produces the same amount of output.
• C)along with a 1% increase in capital produces 1% more output.
• D)along with a 1% decrease in capital produces the same amount of output.
• E)induces a 1% increase in capital input.

---

Definitions:

Maintenance Practices

Scheduled procedures and routines followed to keep equipment and facilities in good working condition, aiming to prevent unexpected failures.

Optimal Maintenance Policy

A strategy or set of guidelines designed to maximize the effective operation of equipment or assets while minimizing costs, often through preventive and predictive maintenance.

Costs Associated

Expenses related to a specific activity, project, or operation, including direct and indirect costs.

Low Morale

Refers to a general feeling of dissatisfaction, disappointment, or lack of enthusiasm among employees within an organization.