If Your Firm's Production Function Has Constant Returns to Scale,and

question 76

Multiple Choice

If your firm's production function has constant returns to scale,and if you double all your inputs,then your firm's productivity will

• A)not change.
• B)increase but not double.
• C)double.
• D)more than double.

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Definitions:

Journal Entry

A record in accounting that notes a specific financial transaction in a company's general ledger.

Revenue

Revenue is the total amount of money earned by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Revenue Recognition

The accounting principle that dictates the specific conditions under which income becomes recognized as revenue and is reported in the financial statements.

Accounting Records

Documentation and books that contain the financial transactions and financial status of a company.