With a Cobb-Douglas Technology, When α+ β= 1, We Have

question 6

Multiple Choice

With a Cobb-Douglas technology, when α+ β= 1, we have

• A) constant returns to scale
• B) increasing returns to scale
• C) decreasing returns to scale

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Definitions:

Cash

Money in the form of coins or banknotes, especially that held by an organization or individual.

Current Ratio

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year with its current assets.

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered or used on credit but not yet paid for.

Long-Term Note Payable

A liability representing borrowed money that is due for repayment beyond the next twelve months from the balance sheet date.