If Doubling All Inputs Less Than Doubles the Level of Output

question 41

Multiple Choice

If doubling all inputs less than doubles the level of output, then the production function exhibits what type of returns to scale?

• A)variable
• B)increasing
• C)decreasing
• D)constant

---

Definitions:

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded, reflecting the account's usual positive balance.

Expense

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.

Credit

A bookkeeping entry that increases the value of liabilities or equity accounts, or decreases the value of an asset or expense account.

Journal

A detailed record where all financial transactions of a business are initially recorded.