Use the Figure for the Question(s)below

question 3

Multiple Choice

Use the figure for the question(s) below.
-The above screen shot from Google Finance shows the basic stock information for the Commonwealth Bank of Australia. How many Commonwealth Bank shares are on issue?

• A)1.47 million
• B)59 billion
• C)1.73 billion
• D)89.3 billion

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Definitions:

Decreasing Returns to Scale

A situation in which a proportional increase in all inputs results in a less-than-proportional increase in output.

Cobb-Douglas Production Function

The Cobb-Douglas Production Function is an economic model representing the relationship of an output to inputs, typically showing how labor and capital contribute to the production process in a way that reflects diminishing returns.

Returns to Scale

The rate at which output increases as inputs are increased proportionally in the production process.

Logarithmic Variable Cost Function

A formula representing the variable costs of production as a logarithmic function, indicating how these costs evolve as production volume changes.