The Table Below Shows Various Values of Labour (L),capital (K),and

question 105

Multiple Choice

The table below shows various values of labour (L) ,capital (K) ,and technology (T) for Economies A,B,and C.In each case,the aggregate production function takes the following form:
Y = T × TABLE 25-4
-Refer to Table 25-4.The production function that applies to Economies A,B,and C displays

• A)increasing returns to scale.
• B)increasing marginal returns to labour.
• C)diminishing marginal returns to labour.
• D)constant returns to scale.
• E)Both C and D are correct.

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Definitions:

Business Valuation

The process of determining the economic value of a business or company, using various methodologies to assess its overall worth.

Balance Sheet Method

The balance sheet method is an accounting technique used to calculate the net worth of a company by summarizing its financial assets, liabilities, and equity at a specific point in time.

Asset Method

A valuation technique that determines a company's value based on the total net assets it possesses, often used in the context of mergers, acquisitions, and financial reporting.

Income Statement Method

An accounting methodology used for calculating income and expenses to determine a company's net profit or loss over a specific period.