A Production Function Embodies Increasing,constant,and Decreasing Returns to Scale

question 81

Multiple Choice

A production function embodies increasing,constant,and decreasing returns to scale:

• A)when the proportion of capital to labor used in production is constant.
• B)at low output levels.
• C)in the short-run.
• D)at various points on an isoquant.

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Definitions:

Labor Efficiency Variance

The variance between the real hours spent producing a good or service and the anticipated standard hours, times the standard wage rate.

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard variable overhead expected for the actual production achieved.

Variable Overhead Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of variable production costs, comparing the actual hours worked to the standard hours expected.

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost.