(Figure: Capital and Labor XII) Which of the following statements is (are) TRUE? 
I. Panel a illustrates constant returns to scale.
II. Panel b illustrates decreasing returns to scale.
III. Panel a illustrates increasing returns to scale
IV. Panel b illustrates constant returns to scale.
Definitions:
Net Income
The amount of profit left after all operating expenses, taxes, and interest payments are deducted from total revenue.
Revenues
Revenues are the total income earned by a company from its normal business activities, before any expenses are deducted.
Expenses
Costs incurred in the process of earning revenue, typically categorized as certain costs necessary to operate a business.
Assets Increase
A rise in the company's resources, resulting from transactions that bring future economic benefits to the entity.
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