If a Firm Triples Inputs and Produces Three Times the Output

question 94

Multiple Choice

If a firm triples inputs and produces three times the output, then there are

• A)constant returns to scale.
• B)varying returns to scale.
• C)decreasing returns to scale.
• D)increasing returns to scale.

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Definitions:

Retired the Bonds

The process by which a company pays off or redeems its outstanding bonds before their maturity date, removing the liability from its balance sheet.

Bond Sinking Fund

A reserved fund established by a corporation or government entity to set aside money over time for the purpose of repaying bonds.

Recorded Interest

The interest that has been accrued or paid on borrowed funds or investments, documented in the financial records.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price.