A Production Function for Which Proportional Changes in All Inputs

question 49

Multiple Choice

A production function for which proportional changes in all inputs leads to a more-than-proportional change in output is said to exhibit

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

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time.

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The monetary value of a share of a company's equity as traded on a stock exchange.

Interest Rates

The cost of borrowing money, expressed as a percentage of the amount borrowed, charged by lenders to borrowers for the use of their funds.