Examlex
Which statement is MOST accurate?
Returns To Scale
The rate at which output increases in response to proportional increases in all inputs or factors of production.
Production Function
An equation that describes the maximum amount of output that can be obtained from a given number of inputs.
Output
The total amount of goods or services produced by a company, country, or economic system.
Returns To Scale
The rate at which output changes in response to a proportional change in all inputs used in the production process.
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