A Firm Has the Production Function F(x₁, X₂)= (X^b₁

question 11

Multiple Choice

A firm has the production function f(x₁, x₂) = (x^b₁ . x_b²) c, where b > 0 and c > 0.This firm will have

• A)increasing returns to scale if and only if 2b + c > 1.
• B)increasing returns to scale if and only if bc > 1.
• C)increasing returns to scale if and only if b + c > 1.
• D)constant returns to scale if and only if c = 1.
• E)constant returns to scale if and only if b = c.

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Definitions:

Long-Term Goals

Objectives or aims that are intended to be achieved over an extended period, typically beyond one year.

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Internal Environment

Internal factors within an organization, including employees, company culture, and internal processes.

Strategic Environment

The external and internal factors that influence an organization's strategy and strategic planning processes.