A Production with the Form Q = 40 L

question 35

Multiple Choice

A production with the form Q = 40 L^.75 K^.20 will have __________ in the long run.

• A) increasing returns to scale
• B) decreasing returns to scale
• C) constant returns to scale
• D) diminishing returns to the variable input

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Definitions:

Obsolete Information

Information that is no longer relevant or useful due to changes in technology, knowledge, or societal norms.

Truth In Lending Act

A U.S. law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Terminate Credit Plan

The process of ending a credit agreement, closing the account, and settling any outstanding debts.

Home Equity Loan

A type of loan in which the borrower uses the equity of their home as collateral.