-The Above Figure Shows the Isoquants for Producing Steel

question 37

Multiple Choice

-The above figure shows the isoquants for producing steel.When producing more than 20,000 tons there are

• A) increasing returns to scale.
• B) decreasing returns to scale.
• C) constant returns to scale.
• D) economies of scale.

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Definitions:

Interest

The cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage rate.

Principal Repayment

The process of paying back the original amount borrowed from a lender, excluding interests.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations from its operating income.

Bonds Payable

Long-term liabilities representing money owed by a company to bondholders, to be repaid at a future date.