Consider the Aggregate Production Function Y = F(K,L)

question 113

Multiple Choice

Consider the aggregate production function Y = F(K,L) .If the inputs K and L are increased by 5% each and total output (Y) increases by 5% as a result,then this production function is displaying

• A)increasing returns to scale.
• B)constant returns to scale.
• C)decreasing returns to scale.
• D)diminishing marginal returns.
• E)a change in technology.

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Definitions:

Fixed Position Layout

A layout where the product remains stationary and machinery, equipment, and workers move around as needed.

Material Handling

The movement, protection, storage, and control of materials and products throughout manufacturing, warehousing, distribution, consumption, and disposal.

Category Management

A retail and supply chain management strategy where products are managed by categories as strategic business units.

Merchandising Plans

Strategies developed by retailers to promote the sale of goods and services, including product selection, pricing, and display techniques.