Which of the Following Have to Be True About Functions

question 2

Multiple Choice

Which of the following have to be true about functions in the duality picture:

• A)The expenditure function is homogeneous of degree 1 in prices.
• B)The compensated demand functions are homogeneous of degree 1 in prices.
• C)The uncompensated demand functions are homogeneous of degree 1 in prices.
• D)Both (a) and (b).
• E)Both (b) and (c).
• F)Both (a) and (c).
• G)All of the above.
• H)None of the above.

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Definitions:

Volume Variance

A measure used in costing to indicate the difference between expected production volumes and the actual volumes produced, affecting costs.

Fixed Factory Overhead

Indirect, consistent costs associated with operating a manufacturing facility, such as salaries of supervisors and rent.

Normal Standards

The expected performance or cost levels under normal operating conditions, used for budgeting or measuring efficiency.

Ideal Standards

Benchmark or optimal performance levels set in managerial accounting to evaluate operational efficiency, without considering any business constraints.