Returns to Scale

question 32

Essay

Returns to Scale. Determine whether the following production functions exhibit constant, increasing, or decreasing returns to scale.

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Definitions:

Peace Policy

An approach by governments or organizations towards achieving peace and resolving conflicts through diplomacy, negotiation, and nonviolent means.

Gold Standard

Policy at various points in American history by which the value of a dollar is set at a fixed price in terms of gold (in the post–World War II era, for example, $35 per ounce of gold).

Gilded Age

A period in late 19th century American history characterized by rapid economic growth, especially in the North and West, but also marked by stark social inequalities and lavish lifestyles of the elite.

Business And Banks

Involves commercial organizations and financial institutions that deal with money, lending, and other financial services.