A Production Function Exhibits Decreasing Returns to Scale When _____

question 34

Multiple Choice

A production function exhibits decreasing returns to scale when _____ increases less than proportionately to input use.

• A)cost per unit
• B)average product
• C)marginal product
• D)total product

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the asset's useful life.

Pension Plan Accounting

The process of recording and managing all the financial aspects of a pension plan, including its liabilities and assets.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards for financial reporting.

Postemployment Benefits

Benefits, including pension plans and healthcare, that an employee is entitled to upon retirement or termination of service.