If Output Is Produced According to Q = 3K

question 1

Multiple Choice

If output is produced according to Q = 3K + 4L,then this production process exhibits:

• A) increasing returns to scale.
• B) decreasing returns to scale.
• C) first increasing and then decreasing returns to scale.
• D) constant returns to scale.
• E) first decreasing and then increasing returns to scale.

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Definitions:

Equity

Represents the owners' interest in the assets of a company after all liabilities have been deducted.

Dividends

The distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

NCI Entry

A journal entry that records the non-controlling interest's share of equity in the consolidated financial statements.

Equity

The value of an owner’s interest in a company, represented by the difference between the company's assets and liabilities.