-The Table in the Above Figure Shows the Levels of Output

question 95

Multiple Choice

-The table in the above figure shows the levels of output resulting from different levels of inputs.Which of the following conclusions can be drawn from this information?

• A) Increasing returns to scale exist between 100 and 200 units of output.
• B) Constant returns to scale exist throughout all levels of production.
• C) Labor is subject to diminishing marginal productivity in the short run.
• D) No firm conclusions can be drawn.

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Definitions:

Aging Report

A financial report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding.

Balance Sheet

A balance sheet is a financial statement that portrays a company's financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.