With Constant Returns to Scale and Factor Prices Invariant with the Amount

question 32

Multiple Choice

With constant returns to scale and factor prices invariant with the amount of factors used, the long-run output expansion path is

• A)Horizontal
• B)A straight line
• C)U-shaped
• D)Zero

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Definitions:

Total Percentage Return

A financial metric that measures the total return of an investment, expressed as a percentage, including all dividends and capital gains.

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, which can be issued in various forms such as cash payments or further shares.

Geometric Average Rate

The average rate of return that accounts for compounding over a specified time period.

Stock

A type of investment that represents ownership in a corporation, giving the holder a claim on part of the corporation's assets and profits.