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:

Blanket Inventory Lien

A security interest granted by a borrower to a lender, covering all of the borrower's inventory.

Revolving Line of Credit

A credit facility extended by a financial institution to a client that allows the borrower to draw, repay, and redraw loans advanced to them up to a specified maximum amount.

Annual Sales

Annual sales is the total amount of sales or revenue a company generates in a fiscal year.

Retailer

A retailer is a business or person that sells goods directly to consumers for personal or household consumption.