A Constant Returns to Scale Production Function Means That If

question 4

Multiple Choice

A constant returns to scale production function means that if all inputs are halved then output will

• A)double.
• B)increase,but not double.
• C)fall by half.
• D)fall,but not by half.
• E)none of the above.

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Definitions:

Contributed Capital

The total value of money or assets that shareholders have directly invested in a company.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a United States federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.