(Figure: Capital and Labor XII) Which of the Following Statements

question 130

Multiple Choice

(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.

• A) I and IV
• B) II and III
• C) III and IV
• D) I and III

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Definitions:

Null Hypothesis

A hypothesis in statistical inference and hypothesis testing that suggests no significant effect or relationship exists in the data.

Critical Value

A threshold value in hypothesis testing, beyond which we reject the null hypothesis in favor of the alternative hypothesis.

P-Value

A measure in statistical hypothesis testing that helps in determining the significance of the results.

Null Hypothesis

The hypothesis that there is no effect or no difference, serving as the default assumption in hypothesis testing.