Suppose It Takes 30 Workers and 120 Units of Capital

question 56

Essay

Suppose it takes 30 workers and 120 units of capital to produce 300 trucks a day.How much labour and capital is involved in producing 900 trucks a day if the firm experiences constant returns to scale?

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Definitions:

Production

The process of creating, developing, manufacturing, or bringing forth goods and services, typically involving both human labor and tools or machinery.

Collective Ownership

A principle or practice where the assets or property are owned jointly by all members of a group or community, emphasizing shared rights and responsibilities.

Means of Production

The tools, machinery, facilities, and resources used to produce goods and services, often discussed in the context of economic systems and ownership.

Communism

A system of government that eliminates private property; it is the most extreme form of socialism, because all citizens work for the government and there are no class distinctions.