Let a Firm's Production Function Be $Q = 100 ( a L + b K )$

question 97

True/False

Let a firm's production function be $Q = 100 ( a L + b K )$ . The production function then becomes $Q = 500 ( a L + b K )$ . Economies of scale have increased.

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Definitions:

Charges

Fees or prices asked for goods or services.

Payments

The act of providing money or its equivalent in exchange for goods, services, or to settle debts.

Balance Due

The amount of money owed on an invoice or bill that remains unpaid and is required to settle the account.

Double-Entry Bookkeeping System

An accounting method where each transaction is recorded in two accounts, showing both the source and the destination of funds to ensure accuracy.