When an Equal Percentage Increase in the Factors of Production

question 61

Multiple Choice

When an equal percentage increase in the factors of production raises real GDP by the same percentage,the production function has the characteristic known as

• A)constant returns to scale.
• B)constant marginal productivity.
• C)diminishing marginal productivity.
• D)increasing returns to scale.

Calculate total utility and marginal utility from given data.

Analyze the relationship between product prices, consumer income, and purchase quantities to maximize utility.

Understand the concept of indifference schedules and how they reflect consumer preferences.

Identify changes in consumer utility with successive units of consumption.

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Definitions:

Benefit Corporation

A type of for-profit corporation, available by statute in a number of states, that seeks to have a material positive impact on society and the environment.

Decision-making Process

The series of steps or actions taken to make choices or judgments among alternative courses of action.

Society

A community of people living together in a more or less ordered community, or the aggregate of people living together in a more or less ordered community.

Unlimited Liability

A business obligation where owners are personally responsible for all of a company's debts.