If There Are Constant Returns to Scale,the Production Function Can

question 152

Multiple Choice

If there are constant returns to scale,the production function can be written as

• A)xY = 2xAF(L,K,H,N).
• B)Y/L = A F(xL,xK,xH,xN).
• C)Y/L = A F( 1,K/L,H/L,N/L).
• D)L = AF(Y,K,H,N).

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Definitions:

Transactions

Transactions are actions involving the transfer of goods, services, or funds between two or more parties.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.

Salvage Value

The anticipated value left in an asset at the conclusion of its serviceable life, employed in the depreciation calculation.

Useful Life

The estimated period during which an asset is expected to be usable for its intended purpose, affecting its depreciation calculation.