If All Inputs Are Raised by Equal Percentages and Output

question 39

True/False

If all inputs are raised by equal percentages and output increases by a larger percentage, there are decreasing returns to scale.

---

Definitions:

Simple Consideration

The minimal requirement of value that must be exchanged between parties entering into a contract, for the contract to be considered valid.

Indorsement

The act of signing the back of a negotiable financial instrument, thereby making it payable to someone other than the named holder.

Signature

A person's name written in a distinctive way as a form of identification in authorizing a document.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a designated entity from the drawer's account.