A Production Function Exhibits Decreasing Returns to Scale If

question 93

Multiple Choice

A production function exhibits decreasing returns to scale if:

• A) when you double each input, you double the output
• B) when you double each input, you more than double the output
• C) when you double each input, you less than double the output
• D) when you double one input, you double the output
• E) when you hold inputs constant, you double the output

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Definitions:

Deposits In Transit

Funds that have been sent to a bank but not yet recorded by the bank in the company’s account balance.

Outstanding Checks

Checks that have been written and recorded in a company's accounting system but have not yet been cashed or cleared by the bank.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under previous invoices.

Sarbanes Oxley

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures, influenced by financial scandals.