$$\text { The production function } Q ( L , K , M ) = 25 K ^ { 0.5 } L ^ { 0.5 } M ^ { 0.5 } \text { exhibits: }$$

question 94

Multiple Choice

$$\text { The production function } Q ( L , K , M ) = 25 K ^ { 0.5 } L ^ { 0.5 } M ^ { 0.5 } \text { exhibits: }$$

• A)decreasing returns to scale.
• B)constant returns to scale.
• C)increasing returns to scale.
• D)either decreasing or constant returns to scale, but more information is needed to determine which one.

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Definitions:

Office Expense

Refers to the costs associated with running an office, including rent, supplies, and utilities.

Escrow Completed

The point at which all conditions of a real estate transaction are met and the title of the property is transferred from the seller to the buyer.

Monthly Fixed Cost

Regular expenses that do not vary with production level or sales volume, incurred on a monthly basis.

Variable Manufacturing Cost Per Unit

The total variable costs involved in manufacturing a product, divided by the number of units produced.