If a Firm's Production Function Is F(z₁,z₂)= Z₁ + Z₂

question 28

Multiple Choice

If a firm's production function is f(z₁,z₂) = z₁ + z₂, it exhibits:

• A)decreasing returns to scale.
• B)increasing returns to scale.
• C)initially increasing, and subsequently decreasing returns to scale.
• D)constant returns to scale.

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Definitions:

Receivables

Money owed to a company by customers or clients for goods or services that have been delivered or used but not yet paid for.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.

Equity Method

An accounting method used to record investments in which the investor has significant influence but not full control.

Total Dividends

The total sum of money paid to shareholders out of a company's earnings.