If Your Firm's Production Function Has Constant Returns to Scale,and

question 76

Multiple Choice

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

• A)not change.
• B)increase but not double.
• C)double.
• D)more than double.

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Definitions:

Manufacturing Overhead Cost

Indirect expenses related to the manufacturing process, such as utilities, maintenance, and factory equipment depreciation.

Applied Manufacturing Overhead

The allocation of indirect manufacturing costs to products based on a predetermined rate.

Requisitions of Raw Materials

Requests or orders for the purchase of raw materials needed in the manufacturing process.

Purchases of Raw Materials

This refers to the acquisition of the basic materials needed for production or manufacturing processes.