If Your Firm's Production Function Has Constant Returns to Scale,and

question 76

Multiple Choice

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

• A)not change.
• B)increase but not double.
• C)double.
• D)more than double.

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Definitions:

Uncertainty

A situation where the outcomes of an event or condition cannot be accurately predicted or quantified.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Current Liabilities

Obligations or debts a company is expected to settle within one fiscal year or its operating cycle, whichever is longer, including accounts payable and short-term loans.

Debt Guarantees

Debt guarantees refer to commitments made to pay back a loan or debt if the original borrower fails to do so, often provided by a third party.