The Production Function Q = 50K^0.25L^0.25 Exhibits

question 35

Multiple Choice

The production function Q = 50K^0.25L^0.25 exhibits

• A)increasing returns to scale.
• B)constant returns to scale.
• C)decreasing returns to scale.
• D)increasing, then diminishing returns to scale.
• E)negative returns to scale.

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Definitions:

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered but not yet paid for.

Statement of Cash Flows

A financial report summarizing the total cash inflows and outflows experienced by a company.

Operating Activities

The day-to-day actions that businesses undertake to generate earnings, such as selling products or services.

Financing Activities

Activities that result in changes in the size and composition of the equity and borrowings of a company, as reported in the cash flow statement.