Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A) The value of a company's share will decrease unless a dividend is paid every year
• B) The value of a company's share will increase if a regular dividend is paid
• C) If a company can earn a better rate of return, by investing retained profits, than shareholders can earn themselves, then dividends should be paid
• D) If a company can earn a better rate of return, by investing retained profits, than shareholders can earn themselves, then there is a case for dividends not to be paid

Analyze production functions to determine the equation of an isoquant for a given output level.

Assess the implications of different production functions on the ability to substitute one factor of production for another.

Interpret the concept of returns to scale and marginal products from the production functions.

Understand the relevance of specific types of production functions (e.g., Cobb-Douglas, Leontief) in real-world production processes.

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