If Output Is Produced with Two Factors of Production and with Increasing

question 30

Multiple Choice

If output is produced with two factors of production and with increasing returns to scale,

• A)there cannot be diminishing marginal rate of substitution.
• B)all inputs must have increasing marginal products.
• C)on a graph of production isoquants, moving along a ray from the origin, output more than doubles as the distance from the origin doubles.
• D)the marginal product of at least one input must be increasing.
• E)all inputs must have decreasing marginal products.

Understand the concept of duration in the context of perpetuities.

Evaluate how yield to maturity affects bond duration and prices.

Compare and contrast durations across different bonds and yields.

Understand the definitions and differences between new buys, modified rebuys, and straight rebuys.

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Definitions:

Sales Units

The quantity or number of products sold or services rendered by a business during a specific period.

Product Warranty Payable

A liability account that records the estimated amounts a company expects to pay for warranties on products it has sold.

Product Warranty Expense

Costs associated with the repair or replacement of faulty products that have been sold, under the terms of a product warranty.

Estimated Product

A provisional evaluation or calculation of a product's potential production costs, sales value, or impact on the market.