Constant Returns to Scale Implies That If N and K

question 42

Multiple Choice

Constant returns to scale implies that if N and K both increase by 3% that

• A)output (Y)will increase by 3%.
• B)Y / N will increase by 3%.
• C)Y / N will increase by less than 3%.
• D)the capital-labor ratio will increase by 3%.

Assess the financial implications of extending credit to new customers, including the potential for increased sales and risk of default.

Evaluate the benefits and risks of switching from a cash-only to a credit sales policy.

Understand the impact of trade credit terms on payment amounts and timing.

Calculate the reorder point for inventory management to ensure adequate stock levels.

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Definitions:

Effective Sentences

Effective sentences are constructed in a manner that clearly communicates ideas or messages in a concise and understandable way.

Coherent Paragraphs

Coherent paragraphs are composed of sentences that are logically connected, making the content clear and easy to follow.

Planning Phase

The initial stage in a project or process where goals are defined, strategies are developed, and tasks are outlined.

Better Results

Improved outcomes or achievements, typically resulting from refined processes, increased effort, or innovative strategies.