Which of the Following Statements Is TRUE

question 68

Multiple Choice

Which of the following statements is TRUE?

• A)A Cobb-Douglas production function can have different returns to scale at different output levels.
• B)It is impossible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level.
• C)It is possible to have increasing returns to scale for one output level, and decreasing returns to scale for a different output level.
• D)None of the above.

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Definitions:

Authoritative Statement

An assertion or declaration made by a recognized authority on a subject.

Quasi-Contracts

Legal agreements created by the courts between two parties who did not have a previous obligation to each other, in order to prevent unjust enrichment.

Implied-In-Fact Contracts

Agreements that are not written but formed through the actions or conduct of the parties involved, implying mutual consent.

Legally Unenforceable

Pertains to a contract or obligation that, due to a lack of certain legal requisites, cannot be upheld by a court of law.