Use the Following to Answer Questions

question 34

Multiple Choice

Use the following to answer questions :
Table 6-1
-Suppose that production were represented by the production function displayed in Table 6-1 above.You would conclude that:

• A)land displayed diminishing returns.
• B)labor displayed diminishing returns.
• C)production displayed constant returns to scale.
• D)all of the above were true.
• E)none of the above were true.

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Definitions:

Profits

The income that remains after subtracting a company's expenses from its revenue.

Presumed

Accepted as true or existing based on probability or logical inference, often without direct evidence.

Sole Proprietors

A sole proprietorship is a type of enterprise that is owned and run by one person and in which there is no legal distinction between the owner and the business entity.

Limited Liability

The legal principle that limits each owner's financial loss to the amount of money that individual has invested in a company.