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

question 57

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:

Money Security Interest

A legal claim or lien on collateral (such as cash or deposit accounts) provided by a debtor to secure a loan or other credit, ensuring the lender has a priority claim over the funds in the case of default.

Chattel Paper

A legal term referring to a document or electronic record that evidences both a monetary obligation and a security interest in a tangible good or a lease.

Security Interest

A legal claim or lien on collateral that has been pledged, often to obtain a loan, to secure the payment or performance of an obligation.

Automatic Perfection

A legal concept in secured transactions where a security interest is perfected immediately upon attachment without any further action required by the secured party.