Suppose That Capital and Labor Must Be Kept in a Fixed

question 25

Multiple Choice

Suppose that capital and labor must be kept in a fixed proportion to produce a particular good.For example,digging a trench requires one worker who has one shovel.What does this imply about returns to scale?

• A)There are constant returns to scale.
• B)There are increasing returns to scale.
• C)There are decreasing returns to scale.
• D)Nothing.

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A feature in Microsoft Office programs that allows users to create visually appealing diagrams and charts.

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A digital representation of a physical object that can be manipulated on a computer to view it from any angle.

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Predefined animation effects included in software applications, especially presentation software, to enhance visuals or text elements.

Equation

A mathematical statement that asserts the equality of two expressions, represented by the symbol =.